Bankruptcy is stressful, but it can provide financial relief. For one thing, you need to examine your entire financial life and accept a lot of other people doing the same thing. On the other, however, after the bankruptcy has been discharged, you can get a fresh start and begin to re-build your credit. Here are some simple tips anyone can use to help make the process of bankruptcy go smooth.
Most people that file for bankruptcy owe a lot of money that they could not pay off. If this applies to you, be sure that you know what the laws of your state are. Each state has their own bankruptcy laws. In a few states, they see to it that your house is protected. This is not the case when it comes to other states. Know what the laws are in your state before filing.
Once a person’s debts outstrip his or her ability to repay them, bankruptcy may be the only option left. If this applies to you, be sure that you know what the laws of your state are. Each state has its own laws regarding personal bankruptcy. For example, whether or not you can keep your home, as well as what you need to do to keep it, is different for every state. You should be aware of local bankruptcy laws before filing.
Never lie about anything in your bankruptcy petition. Not only is hiding income and assets wrong, it is also a crime.
Secured Card
You might experience trouble with getting unsecured credit after filing for bankruptcy. This being the case, look at secured card options. They offer you the chance to demonstrate the seriousness with which you now take your financial obligations. After using a secured card for a certain amount of time, you might be offered an unsecured card once again.
Do not even think about paying your taxes with credit and petitioning for bankruptcy right after. 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. Rule of thumb is if the tax is dischargeable, then the debt will be dischargeable. Therefore, you have no reason for use of a credit card, if the amount is to be discharged in due process of the bankruptcy.
Take steps to ensure your home is protected. Filing bankruptcy does not necessarily mean that you will lose your house. You might be able to keep your home, contingent on certain factors, such as your home decreasing in value or having a second mortgage. If this is not the case, find out more about Homestead Exemptions you might qualify for if you meet certain financial requirements.
Spend time with friends and family to keep your stress levels to a minimum through the bankruptcy filing process. The process for bankruptcy can be brutal. It is long, stressful and makes people feel like losers. A lot of folks decide to hide themselves from the world around them until the end of the process. But, keeping to yourself is likely to cause even greater sadness and despair. Therefore, meet this challenge head on and surround yourself with caring family members so you can get through this difficult financial situation.
Bankruptcy is a process that has both benefits and drawbacks. Whatever your reason for doing it, keep in mind that information is the strongest ally you have throughout the entire process. After reading the tips we present here, you will be able to manage your bankruptcy filing with ease. Put them to use and see how smooth the process can be and how much happier you will feel!
Think through your decision to file for bankruptcy carefully before going ahead with it. Look into other options, such as consumer credit counseling. Bankruptcy stays on your credit for a whole decade, so if there are less drastic options that will solve your credit problems, it is in your best interest to make use of them.