It’s never great when someone needs to file bankruptcy. Many people feel embarrassed or ashamed if they have to tell other people that they are bankrupt. Don’t give into it and be sure to use this advice to figure out what you need to know to avoid bankruptcy.
Unsecured Credit
Do not attempt to pay your taxes with your credit cards and subsequently file for bankruptcy. Most of the time, you won’t be able to discharge this debt, and you could make things worse with the IRS. Transferring the debt to another medium (e.g. a credit card) won’t magically make a tax debt discharagable, either. There isn’t any reason to use a credit card to pay the tax bill since the bill can be discharged anyway.
You might find it difficult to obtain an unsecured credit card or line after emerging from bankruptcy. If that is the case, you should try applying for one, or two secured cards. This will show people that you are serious about getting your credit record back in order. Once you’ve built up a history of on-time payments, you may start getting unsecured credit again.
There is hope! You may be able to regain property like electronics, jewelry, or a car if they’ve been repossessed by filing for bankruptcy. You may be able to recover repossessed property if the repossession occurred fewer than 90 days ago. Speak to a lawyer who will be able to help you file the necessary paperwork.
If you are considering filing for bankruptcy you definitely need to hire an attorney. You may not know everything you need to know in order to have a successful outcome of your case. A bankruptcy attorney can help yo,u and make certain you can do things the right way.
Try going to a personally recommended bankruptcy lawyer instead of using a phone book or the Internet. There are so many dime-a-dozen companies out there who make it a practice of preying on financial desperation. You need to make sure your bankruptcy goes smoothly, so find someone you know you can trust.
Make sure bankruptcy is truely your only option before filing. Talk to a bankruptcy lawyer to see if a debt repayment plan or reduction in interest rates is a viable option for you instead of bankruptcy. Loan modification can help you get out of foreclosure. Your particular loan holders can provide a lot of assistance if you’re just willing to speak with them. You can negotiate lower rates, longer terms, and other means of repayment that may keep you from having to file a claim. When push comes to shove, creditors want their money, and they are willing to make concessions to get it and prevent the debtor from declaring bankruptcy.
Once the initial filing period is over, ensure that you are getting out and enjoying life. It is common for people to stress when filing. Don’t let the process control you in a negative way. You will get through it, and you should make an effort to remember that. Once the process if over, your life will improve.
In most cases, bankruptcy isn’t really your only option. Take the information provided here and avoid filing if at all possible. Learn to live within your means and bankruptcy may be avoided.
You must be absolutely honest when filing for personal bankruptcy. If you try to hide any of your information, it will eventually surface and cause you problems. Whomever you use to file with must know everything there is to know about your finances, both good and bad. Don’t withhold information, and create a smart way of coping with the reality of the situation.