There are those who consider bankruptcy a situation for losers, but when it affects them personally, they change their tone. Major life changes, including divorce and job loss can quickly cause a financially stable person to become insolvent, forcing him to file for bankruptcy. If that happened to you, you can find some help from the information in this article.
Before filing for personal bankruptcy, make sure you are doing the right thing. There are plenty of other options open to you, like consumer credit counseling. Be certain that bankruptcy is the only option you have before pursuing this course because bankruptcy is always evident on your financial and credit history.
Don’t use a credit card to pay off your taxes before filing for bankruptcy. Credit card debt is handled charge by charge during bankruptcy, and in most states, tax debt cannot be discharged through bankruptcy. Generally speaking if you can discharge the tax, you can discharge the debt. Just because your credit card could be discharged in bankruptcy does not mean you should use it.
Retirement Accounts
Avoid exhausting your savings or emptying your retirement accounts to pay off creditors if you are considering filing for bankruptcy. Do not tap retirement accounts unless there is no other alternative. You may need to use some of your savings; however, you should not use all of your savings. Remember that you must safeguard your future financial security.
After filing for bankruptcy, you could have trouble acquiring unsecured credit. In this event, you should attempt to apply for a secured card or two. Having a credit card of any type will allow creditors to realize that you’re attempting to work in the right direction to repair your credit. It will take time, but when creditors see a pattern that satisfies their need to see your good faith with payments, you will then be able to apply for unsecured cards.
Don’t be afraid to remind your lawyer about important aspects of your case. Just because you have told him something of importance that he will remember it. Speak up, because it is your future on the line.
Before you decide to file bankruptcy proceedings, determine which assets will be safe. The Bankruptcy Code includes a list of the types of assets that are exempt from the bankruptcy process. You need to compare this list to the assets you own so that you are not surprised when certain assets are seized. You wouldn’t want to unexpectedly lose any possessions you treasure.
You should never give up. If you’ve had collateral, such as a car, electronics, or jewelry repossessed for non-payment, you might be able to recover the property when you file for bankruptcy. If your personal property was repossessed within 90 days before your bankruptcy filing, you may have a chance of getting it back. A qualified bankruptcy attorney can walk you through the petition process.
You should not have to pay for a consultation with a bankruptcy attorney. Make sure you ask lots of questions. Most lawyers will meet with you for free and give you helpful advice, so meet with several. Don’t hire an attorney who fails to address all your concerns and questions. There is no need to offer an immediate hire, so take your time. If you’re unsure, don’t hesitate to talk to multiple bankruptcy lawyers.
Don’t file for bankruptcy until you know what assets of yours can and can’t be seized. The Bankruptcy Code provides a list of all the different kinds of assets that you can exclude. Many belongings may become eligible for repossession or seizure after filing for bankruptcy. If you neglect this important step, you might be blindsided when a possession that is important to you is taken to repay creditors.
Learn of new laws prior to deciding to file for bankruptcy. Bankruptcy laws change a lot and before making the decision to file, you need to know what you are getting yourself into. To learn how the law has changed recently, go online and check your state’s website, or call the state government and ask them.
It is possible to exhaust every possible option to improve your financial situation and still find bankruptcy the only solution. If you find that you have no other choice, then do your best to not let bankruptcy to be something to fear. When you read this article, you will find some very valuable information.