Personal Bankruptcy Advice For Those Who Need To File

It can be hard to file bankruptcy. When you are dealing with financial stress, you come to the realization there aren’t many options. Even without perfect credit, you can still get the loans you need.

If you are going through a bankruptcy do not fall victim to guilt and pay off debts that you do not need to pay. Unless there is no other choice a retirement account should not be used. If you do have to dig into your savings, make sure that you leave enough to sustain you and your family for a couple of months.

Never lie about anything in your bankruptcy petition. As long as you are not hiding income or assets from the courts, you can ensure that there are no difficulties with your petition. This will save you from having your petition dismissed and your debts dropped from re-filing.

Millions of Americans file for bankruptcy each year because they can not pay their bills. If this sounds familiar, you should read up on the bankruptcy laws in your state. Every state is different when it comes to dealing with bankruptcy. For instance, some states protect you from losing your home in a bankruptcy, but others do not. Be sure to have some familiarity with the law in your jurisdiction.

Don’t avoid telling your lawyer specific details with your case. Lawyers are people too, and sometimes they forget important information and need to be reminded. Don’t be afraid to speak up, as it is your case and your future will be affected by its outcome.

Unsecured Credit

Be aware that getting unsecured credit is going to be tough once you’ve gone through bankruptcy. Since it is important that you work to rebuild your credit, you should instead think about applying for a secured card. This demonstrates to creditors that you are making a good faith effort to repair your credit. Unsecured credit may be offered to you quicker than you think after doing so.

Don’t use credit cards to pay your taxes if you’re going to file bankruptcy. Most states do not look at this debt as chargeable, and you could end up owing money to the IRS. If the tax can be discharged, so can the debt. So using your credit card to pay off your tax obligations, then filing for bankruptcy, can actually hurt you instead of help you.

Never give up. You may be able to regain property like electronics, jewelry, or a car if they’ve been repossessed by filing for bankruptcy. If you have any property in repossession that was taken less than three months before filing for bankruptcy, then there are good odds that you can get your property back. Speak with your attorney about filing the correct petition to get your property back.

Though you may have filed bankruptcy, you are not at the end of your financial life. By becoming financially responsible post-bankruptcy, you’ll be showing lenders that you’re serious about reestablishing your credit worthiness. Begin saving today, and you’ll surely notice the difference in others’ perception of you when you apply for an important loan such as a home or car loan.