Those who face personal bankruptcy sometimes feel negative emotions, like anger. They may feel trapped in their debt, wondering how to survive the next day. You will find there is help, and it is called bankruptcy.
Be certain you understand all you can about bankruptcy by researching reputable sites that offer good information. The United States Department of Justice and American Bankruptcy Institute are both sites that provide free advice. As with everything in life, the more you know about filing a claim, the better off you’ll be. You can properly prepare when you know what you’re preparing for.
After a bankruptcy, you may still see problems getting any kind of unsecured credit. If you find that to be the situation, consider requesting secured cards. This will allow you to start building a good credit history while minimizing the bank’s risk. Once creditors see that you are making an effort to restore your credit, they may allow you to get an unsecured card in the future.
If you are considering paying your taxes with credit cards and turning around and filing bankruptcy–they are on to you. Generally speaking, taxes are not a dischargeable debt. The delays caused by this sort of tactic could leave you owing the IRS a great deal in interest and penalties. One thing that you should remember is that if your tax is dischargable, your debt will also be dischargeable. There isn’t any reason to use a credit card to pay the tax bill since the bill can be discharged anyway.
Do some research about laws and legislation before filing. This area of law is in constant flux and it is imperative that you know where the law stands at the time you file for your bankruptcy. Review the state legislature web site or contact the state legislature office to keep abreast of changes in the law.
Bankruptcy should not be filed by anyone who makes more than their bills cost. While bankruptcy may seem like an easy way out of having to pay back all of the debt that you owe, it is a stain that will remain on your credit report for seven to ten years.
No matter what, don’t give up! When you file for personal bankruptcy, you may even be able to retrieve personal property that has been repossessed. For example you may be able to get your car, electronics and even jewelry returned to you. If your property has been repossessed less than 90 days prior to your bankruptcy filing, there is a good chance you can get it back. Get the advice of a qualified attorney who can advise you about ways to accomplish this.
Before ultimately deciding whether or not to file for bankruptcy, be sure to weigh the different options available to you. Speak with an attorney who specializes in bankruptcy to find out if alternatives, such as a debt repayment plan or a reduction of your interest rates, might be better for you. A plan that can be useful when foreclosure is looming is a loan modification. Your lender can adjust your loan in many ways including extending the time you have to pay, reducing your interest rate, or canceling some of your late fees. Above all else, what creditors want is to get their money. Sometimes they would rather settle for a repayment plan instead of a debtor who is bankrupt.
Don’t file for bankruptcy without knowing your rights. Bill collectors can try to scare you into believing that your debt will not be cleared. What you can’t file on is very small, like student loans or child support payments. If a debt collector tells you this false information, seek the advice of your bankruptcy attorney. You may also want to report the bill collector to the attorney general’s office.
Keep the concept of shame out of your head if you are contemplating bankruptcy. The bankruptcy process makes people feel guilty and ashamed. But, there is nothing positive about feeling this way and it can actually affect your mental state. Remembering to stay positive as you go through financial difficulties is a great way to deal with your bankruptcy filing.
Investigate any new laws before deciding to file a bankruptcy. Bankruptcy laws are in constant flux, so just because you knew the law last year doesn’t mean that the laws will be the same this year. To stay up-to-date on these laws, check out your state’s government website.
Bankruptcy laws are very exact and very important, so ensure that you’re well aware of all current laws before you file a petition. For instance, you are not allowed to move assets from your name to someone else’s for a year before you file. Other laws you need to know include debt-based regulations. You cannot increase debt via credit cards prior to filing a claim. Your finances basically have to remain frozen.
Whenever you file a petition for bankruptcy, do not leave out any information about your finances or assets. If you forget to add these, your petition could be delayed or dismissed. Even if it looks insignificant, you must add it to your documents. This may include secondary employments, vehicles you own and loans you still owe money on.
You should now see there is hope, even if you have had to file for bankruptcy. Though it is very difficult, personal bankruptcy is not the end. Put the information you have found in this article to use so that you can have a very successful bankruptcy.
Learn the differences between Chapter 7 bankruptcy and Chapter 13 bankruptcy. Do some research about these options so you can choose the best one. If you have trouble understanding the wealth of information, talk to your lawyer so he or she can help you make an informed choice.