A lot of people in this day and age are deeply into debt. They are harassed by collection calls and creditors all while the bills keep piling up. If this sounds a lot like your personal situation, you may have started thinking about filing for bankruptcy. The bankruptcy laws vary in each state, so educate yourself on the laws in your state.
Before undertaking the bankruptcy process, ensure you have made the correct decision. Other available options include consumer credit counseling. 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.
Don’t pay tax requirements with your credit cards with the thought of starting the bankruptcy process afterward, without doing your research first. In many areas of the country, this debt will not be dischargeable, and you could be left owing a significant amount to the IRS. Bear this in mind; if the tax can be discharged, then the debt can be as well. So as you can see, in this situation there is no need to use the card when the debt will be discharged when you file for bankruptcy.
It can be difficult to obtain unsecured credit once you have filed for bankruptcy. If so, apply for a secured credit card. You can exhibit your desire to rebuild your credit this way. After a certain time, you will then be able to acquire credit cards that are unsecured.
Never pay to have a consultation with a lawyer, and ask a lot of questions. Seek free consultations from a handful of lawyers, before deciding which one to hire. Choose to file only if your lawyer has convinced you that this is the best decision. You do not need to make a decision immediately after the consult. You could even go to different lawyers for advice.
Many bankruptcy lawyers offer free consultations, so go to several before choosing one. Be certain to speak with an attorney, not their paralegal or law clerk, since they cannot give legal advice. Look for a lawyer who you can relate to.
The best way to build your credit up after a bankruptcy is making all your payments on time. If you are in this situation, applying for a secured card may be the answer. By doing this, you will be letting people know that you want to fix your credit score. After some time passes they may be willing to offer you unsecured credit.
Protect your house. Bankruptcy filings don’t necessarily have to end in the loss of your home. Check your home’s current value to see if it has gained equity and get your first and second mortgage papers together. You could also check out the homestead exemption. This lets you continue living in your house, depending on whether you meet certain financial requirements.
Bankruptcy Process
Make time to visit with family and friends during the bankruptcy process. The bankruptcy process can be brutal. It is often overwhelming, and not quick. Some people may feel embarrassed or feel their self-esteem has taken a beating from it. 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. So, it is critical that you spend what quality hours you can with loved ones, regardless of your financial circumstances.
It is a good idea for you to hire a bankruptcy to handle your bankruptcy process. You may not know everything you need to know in order to have a successful outcome of your case. Personal bankruptcy attorneys can help make sure everything is done properly.
You have undoubtedly gleaned from the text above that bankruptcy doesn’t have to be a difficult process as long as you’re informed. If you take a rational, methodical approach, you’ll soon be experiencing the fresh start you’ve been waiting for.