These days, the process of bankruptcy is an all to common occurrence. The general state of the economy is at least partially to blame. Before you file for personal bankruptcy, educate yourself about the subject, so you make the right decisions. Read further for some helpful advice regarding bankruptcy.
Bankruptcy Laws
Many people need to file for bankruptcy when they owe more money than they can pay off. If this sounds familiar, you should read up on the bankruptcy laws in your state. Each state has its own laws regarding personal bankruptcy. For instance, in some states, you can’t lose your home to bankruptcy, while in other states, you can. You should be aware of local bankruptcy laws before filing.
Do not use a credit card to pay income taxes and then file for bankruptcy. You will find few states that discharge this kind of debt. You may also wind up owing a lot of money to the IRS. In most cases, you can use the adage that “a dischargeable tax is a dischargeable debt.” Just because your credit card could be discharged in bankruptcy does not mean you should use it.
Make sure you keep reminding your attorney about any important details in your case. Don’t assume that they’ll remember something important later without having a reminder. This is your bankruptcy and your future, so never be nervous about speaking your mind.
Unsecured Credit
After a bankruptcy, you may still see problems getting any kind of unsecured credit. Since it is important that you work to rebuild your credit, you should instead think about applying for a secured card. By doing this, you will be letting people know that you want to fix your credit score. When you have done well with secured cards for a while, you should be able to obtain an unsecured credit card.
Rather than checking online, try to get recommendations from friends or family about a suitable bankruptcy attorney. Although you may find a good lawyer through an advertisement, you can simply find a much better lawyer if the lawyer is recommended to you by someone who has gone through the process and who has the inside track on the lawyer’s true capabilities.
You must be absolutely honest when filing for personal bankruptcy. If you try to hide any of your information, it will eventually surface and cause you problems. Whomever you use to file with must know everything there is to know about your finances, both good and bad. Being honest is both the right thing to do and, moreover, it is required by law.
Speak to a bankruptcy attorney about what new laws may be going into effect before your bankruptcy filing. Laws are ever-evolving. You must stay current with bankruptcy laws if you want to be successful in your challenge. A qualified bankruptcy attorney is the best source for the latest information regarding the laws in your state.
There are differences between Chapter 13 bankruptcy and Chapter 7; be sure to familiarize yourself with both. Take the time to find out about each one online, and look at the advantages and disadvantages of each. Go to a specialized lawyer to ask your questions and get some useful advice on what to do.
Always make your loved ones a priority. Going through bankruptcy is a lot of stress. It is long, hard and sometimes leaves people feeling guilty or ashamed. A lot of people become depressed and withdrawn until their bankruptcy is discharged. You shouldn’t do this, though, as staying away from the world can amplify any emotional issue you are having, and they could even morph into full-blown clinical depression. Therefore, meet this challenge head on and surround yourself with caring family members so you can get through this difficult financial situation.
Repayment Plans
Before declaring bankruptcy, see if there’s anything less drastic you can do to repair your credit. A lawyer that specializes in bankruptcy law can help advise you of other options, such as repayment plans and reducing interest rates to relieve some of the burden. Loan modification can help you get out of foreclosure. Lenders can assist you in a lot of ways, by cutting interest rate charges and cutting off late fee charges. They can also lengthen the loan. Because of the fact that creditors would like to see their money they are likely to offer repayment plans versus not getting paid at all if you file for bankruptcy.
If you filed for Chapter 13 bankruptcy, you can still get a mortgage or a car loan. It’s a bit more difficult, though. Your trustee can help you acquire a new loan. You will need to make a budget and prove that you will be able to afford your new loan payments. You should also be prepared to explain why you need to purchase the item.
Gain all the knowledge of personal bankruptcy that you can. The bankruptcy laws are complex, and things could go badly if even one thing is out of place. If you do not know bankruptcy law, your bankruptcy case could be dismissed. Do the proper research on bankruptcy before taking the next step. The proceedings will be much smoother with this information.
As you read at the start of this article, bankruptcy has become a very common process now due to the economy. If you want to know that you are doing the right thing when dealing with your bankruptcy be sure to put the information you read in this article to use.
