There are many emotions experienced by those going through personal bankruptcy. Many people are worried about how they will get their monthly expenses paid. You will find there is help, and it is called bankruptcy.
Think twice if you have struck upon the idea of paying off your taxes by credit card and subsequently filing for personal bankruptcy. In a lot of places, the debt cannot be discharged, and you may still owe money to the IRS. One thing that you should remember is that if your tax is dischargable, your debt will also be dischargeable. Therefore, you have no reason for use of a credit card, if the amount is to be discharged in due process of the bankruptcy.
Instead of jumping into a bankruptcy filing, be sure your situation requires it. Avail yourself of other options, including consumer credit counseling, if they are appropriate for your situation. Before you take the drastic move of filling for bankruptcy and living with a long lasting bad credit history, make sure to consider using another way that may not be as damaging to your credit.
It’s not uncommon to learn soon after bankruptcy that you are unable to get an unsecured credit card easily. If you are in this situation, applying for a secured card may be the answer. This at least shows you are making an honest attempt at reestablishing your credit worthiness. After some time passes they may be willing to offer you unsecured credit.
Don’t hide assets or liabilities when filing for bankruptcy. Your bankruptcy lawyer has to know every detail of your finances, whether bad or good. Do not hold anything in secret and create a strategy on how you will deal with the things you are facing.
Meet with a few attorneys who offer free consultations before hiring one. Just be sure that the person you speak with really is the lawyer, rather than a paralegal, since they cannot legally give advice. Be sure to check out a number of lawyers so that you will find one who is just right for you.
Safeguard your most valuable asset–your home. Filing for bankruptcy does not mean you have to lose your home. Depending on if your home’s value has gone down or if it has a second mortgage, you might be able to keep it. Check to see if you pass the requirements necessary to file for a homestead exemption.
File when the time is perfectly right. Timing is important, and that is especially true when filing for bankruptcy. There are times when you should file as soon as you can, but in some other situations it may be best to wait for the worst to be over. Speak with a lawyer specializing in bankruptcy in order to learn when you should file your petition.
Do not think of filing for personal bankruptcy as a shameful thing. The bankruptcy process can make many people feel ashamed, guilty and unworthy. Feeling like this will not help your situation and can actually do serious damage to your mental well-being. Keep a positive state of mind to deal with your tough financial situation.
Financial Information
If you have to file for bankruptcy, ensure that you supply all your financial information. If you do not complete your financial profile your case could be delayed or dismissed. All financial information needs to be considered by the court. This might take the form of odd jobs, extra cars and outstanding personal loans.
Be cautious if you are planning to pay off any of your debts before you file for bankruptcy. Bankruptcy laws generally prohibit certain creditors from being paid back 90 days before filing and family can be around a year! Read the rules before making financial decisions.
Do not hesitate or stall when determining if filing for bankruptcy is the correct choice for your life and situation. It can be difficult to admit you’re in need of help, but your debt will only grow larger if you put off your decision. Speaking with a professional in a timely manner will allow you to receive sound advice that can help you before things get out of hand.
You need to start getting responsible with your money even before you file for bankruptcy. In other words, you do not want to waste your efforts here by starting to ring up more and more debt. Determinations on whether to grant a bankruptcy are made after looking at your entire record; current history in addition to past issues. Try demonstrating that your current behavior and financial habits have positively changed.
Remember that just because you have filed for personal bankruptcy it will not cause you to lose everything you own. You can keep your personal property. You may keep personal items like jewelry, household furnishings, clothes and electronics. The laws of your state, the kind of bankruptcy you go for, and your finances will determine whether you will lose large assets like your car or your home.
Now that you’ve reached the end of this article, you should see that bankruptcy doesn’t mean leading an unhappy life. While filing for bankruptcy is initially an emotional downer, things will improve. Making use of the tips you found here will allow you to heal your financial situation.
