Bankruptcy is a two-sided coin: relief/stress. It is not fun when you have to bear all your finances out in the open and everyone picks apart your financial situation. On the other, you get to enjoy the peace that comes when the bill collectors stop calling you. This article will give you some great tips to help ease the bankruptcy process.
Be warned that after your bankruptcy, you may stand out as a leper to credit institutions. You may be unable to get a simple credit card. If this is so, apply for a secured card or two. That will show lenders that you are committed to rebuilding your credit. After a certain time, you will then be able to acquire credit cards that are unsecured.
If you are considering using credit cards to pay your taxes and then file for bankruptcy, you may want to rethink that. In many parts of the country, you cannot get this debt discharged, and in the end you will be left owing the IRS a big sum of money. Rule of thumb is if the tax is dischargeable, then the debt will be dischargeable. It is pointless to use credit cards if they can be discharged.
It is important to understand your rights when filing bankruptcy. 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 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 to a lawyer who will be able to help you file the necessary paperwork.
You should not have to pay for an initial legal consultation, and such meetings are great opportunities to ask lots of questions. Most attorneys offer free consultations, so meet with a number of them before you retain one. Make a choice only if you have received good answers to all the questions and concerns you brought to the table. After the consultation, you are not immediately required to come up with a decision. You can take as much time as you need to meet with different lawyers.
Consider other alternatives before filing for bankruptcy. For example, consumer credit counseling programs can help you by renegotiating your debts with your creditors into payments that you can afford. You may have luck negotiating lower payments by dealing directly with creditors, but be sure to document any get and new agreement terms in writing from each creditor.
Always be honest when filling out paperwork. You must avoid the temptation to conceal any valuables, money or other assets from the courts. If they find that you have lied, you may be faced with fines, penalties or the inability to file in the future.
There are many different reasons why people choose to file for bankruptcy. No matter why you are filing, you must remember that knowledge is the key to help during the process. The suggestions you are about to see, will make your bankruptcy easier. Incorporate these tips into the process and watch how much better you feel.