It can be challenging to face the prospect of bankruptcy. When you’re in a bind, financially, you may find that you have limited options. But, even those with damaged credit histories have options when it comes to securing homes and vehicles, as the following article explains.
Have a good look around the Internet to see what information is relevant to you regarding bankruptcy. The United States D.O.J., the A.B.I and the N.A.C.B.A. are all useful organizations willing to provide educational material. The more information you have, the more confident you can be about any decision you make and you will know that you are doing the best thing possible for your situation.
Make sure you are always providing honest documentation whenever you have to file for personal bankruptcy. It is vital that you disclose all information about your assets and income so there are no delays or penalties, such as a court barring you from filing again later in the future.
If you are considering using credit cards to pay your taxes and then file for bankruptcy, you may want to rethink that. Credit card debt is handled charge by charge during bankruptcy, and in most states, tax debt cannot be discharged through bankruptcy. If the tax can be discharged, so can the debt. So, there is no reason to use your credit card if it will be discharged in the bankruptcy.
After a bankruptcy, you may not be able to receive any credit cards. If that’s the case, it is beneficial to apply for one or even two secured cards. This will prove that you want to improve your credit score. Unsecured credit may be offered to you quicker than you think after doing so.
Be sure to remind your lawyer if it seems that some details of your situation are forgotten. Never assume that they can remember all details without reminders. Ultimately, this is your bankruptcy and your financial future, so never hesitate to advocate on your behalf.
There are two different kinds of personal bankruptcy you can file for: Chapter 7 and Chapter 13. Research both types of bankruptcy online, and weigh the positives and negatives each would offer you. If you do not understand what you are reading, talk to your attorney before making that serious decision.
Before going through the Chapter 7 filing process, ensure that your co-debtors are abreast of any implications relating to this process. When filing Chapter 7, you are not legally responsible for the debts in your name. However, the creditors could come after your co-signer and demand full payment for the debt.
When filing for personal bankruptcy you should always be aware of your rights. Some debt collectors like to say that you cannot file for bankruptcy on these debts. There are very few debts, such as child support or student loan debt, that can’t be bankrupted. If you know that a debt can definitely be bankrupted, yet the collector still harasses you, file a report with the attorney general in your state.
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 you find that to be the situation, consider requesting secured cards. By doing this, you will be letting people know that you want to fix your credit score. After a while, you may be able to get unsecured credit again.
Even if you have filed for bankruptcy you now realize that this does not limit you in life forever. By becoming financially responsible post-bankruptcy, you’ll be showing lenders that you’re serious about reestablishing your credit worthiness. Save as much as you can and you will see the difference when you walk in for a new loan for a car or a home.