It’s never great when someone needs to file bankruptcy. Bankruptcy can be ugly, embarrassing and a tough thing to talk about. Don’t give into it and be sure to use this advice to figure out what you need to know to avoid bankruptcy.
Do not even think about paying your taxes with credit and petitioning for bankruptcy right after. 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. Remember that if you can discharge the tax you can discharge the debt. This makes using a credit care irrelevant, since bankruptcy will discharge it.
Never lie about anything in your bankruptcy petition. Remember that if you hide your valuable assets or income from your bankruptcy trustee, you may risk a number of penalties and complications. Among these is the possibility that you could be blocked from ever filing again.
Don’t be reluctant to remind your lawyer about specific details he may not remember. It is wrong to assume that your lawyer will remember every word you ever utter! Speak up if something is troubling you, as this is your future we are talking about here.
Unsecured Credit
You might experience trouble with getting unsecured credit after filing for bankruptcy. If this happens to you, think about applying for a couple of secured credit cards. By doing this, you will be letting people know that you want to fix your credit score. Then, in time, it may be possible for you to obtain an unsecured credit card.
Try to get a bankruptcy lawyer that your friends recommend, as opposed to someone that you find from the Internet or yellow pages. There are plenty of companies who know how to take advantage of people who seem desperate, and it’s important to be sure your bankruptcy can go smoothly; take your time and choose someone you can trust.
Use a personally recommended bankruptcy attorney instead of one found through the Internet or phone books. Some companies just want to take advantage of you, so it is important that you have help from someone you trust.
Don’t file for bankruptcy until you know what assets of yours can and can’t be seized. There are some assets that cannot be seized through bankruptcy, and the law lists those assets. Make sure to review the list before filing a claim so you know if your valuables will be subject to seizure. You wouldn’t want to unexpectedly lose any possessions you treasure.
If you aren’t totally honest about your assets when filing a bankruptcy petition, you could get into serious trouble. The lawyer representing you when you file needs to have full knowledge of your financial situation. Lay everything out on the table so that you and your lawyer can devise a plan to get you out of this mess.
You need to educate yourself on the differences between Chapter 7 and Chapter 13. The Chapter 7 variety can help you eliminate your debts almost entirely. Any debts that you owe to creditors will be wiped clean. Chapter 13 bankruptcy allows for a five year repayment plan to eliminate all your debts. It is worth while to take your time to research both types of bankruptcy to decide which option works best for you, and your financial situation.
In most cases, bankruptcy isn’t really your only option. The tips here can help provide you with some guidance to avoid filing bankruptcy. If you begin using the tips you learned right away, you will surely see a big change in your life, and perhaps you will be able to save your credit history.