Although circumstances leading to bankruptcy may not be positive, life following bankruptcy can be. The main purpose is to give yourself a fresh, new start in life. Learn how to make bankruptcy work for you, instead of allowing it to devastate your life.
Don’t think that loading up your credit card with tax debt and then filing for bankruptcy is an answer either. In many areas of the country, this debt will not be dischargeable, and you could be left owing a significant amount to the IRS. Rule of thumb is if the tax is dischargeable, then the debt will be dischargeable. It is pointless to use credit cards if they can be discharged.
Retirement Accounts
Most people end up filing for personal bankruptcy because they owe more than they make. If you find yourself going through this, you should know all about the laws that are in your state. There are greatly varying laws concerning bankruptcy, so it is important to make sure you are getting the correct information. For instance, your home might be protected in some states while you might lose it in others. Make sure you know the laws where you live before you file.
As bankruptcy appears on the horizon, don’t take your savings or retirement accounts to try to pay off all your bills. Do not tap retirement accounts unless there is no other alternative. Although you may need to tap into your savings, you should not use up all of it right now and jeopardize the financial security of your future.
Once you file for bankruptcy, you will have a hard time getting loans or credits. If you find that to be the situation, consider requesting secured cards. If you pay what you owe back promptly at all times, you can show that you are taking steps to be responsible about your payments and credit rating. If you pay your secured card off on time, you’ll eventually find that companies will start offering you unsecured credit.
Don’t file for bankruptcy until you know what assets of yours can and can’t be seized. Certain assets, as listed in the local bankruptcy regulations, are immune from seizure during bankruptcy. It is important to be aware of this list so you will know what assets are saved. Without reading the list, you may be shocked at which possessions can be taken from you.
After filing for bankruptcy, you may have difficulty getting approved for unsecured credit. If so, apply for a secured credit card. 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. After a certain time, you will then be able to acquire credit cards that are unsecured.
Don’t try to hide anything if you are filing for bankruptcy, as this will hurt you in the long run. When you file make sure whoever is handling the process is fully aware of each and every financial detail. Lay everything out on the table so that you and your lawyer can devise a plan to get you out of this mess.
You should not have to pay for an initial legal consultation, and such meetings are great opportunities to ask lots of questions. Almost all lawyers will give a free consultation, so meet with more than one before making a decision on whom to hire. Therefore consult with different lawyers and get a feel for them, then decide which one suits your needs 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.
Learn and gain a firm grasp of the differences in applying for Chapter 7 bankruptcies versus Chapter 13 bankruptcies. Be sure you go on the Internet and do your research to see what’s best for you. If anything you see is unclear or doesn’t make sense, go over it again with your attorney before making the final filing decision.
Don’t pay to for an initial consultation with a bankruptcy attorney, and thoroughly question each candidate. You can meet with a few lawyers before deciding on one. Most lawyers provide a free initial consultation. Don’t hire an attorney who fails to address all your concerns and questions. You can think about your decision before making a commitment. This allows you time to speak with numerous lawyers.
Ensure that you bankruptcy is your best choice. You might be better off consolidating your debt or availing yourself of some other remedy. Filing a claim can take a long time and cause much stress. It will have a long-lasting effect of your future credit opportunities. So, consider bankruptcy only as a last resort when you have no other choice.
Again, it is likely that whatever precipitated a bankruptcy filing was not something on which you look back fondly. But, just because you ended up in this dark place does not mean that the sun cannot shine once more. Actually, if you use the advice and ideas from this article, you will be able to turn bankruptcy into a turning point for your life.