Bankruptcy is a decision that should not be lightly considered. Learn as much as you can prior to doing anything.
If you’re in this situation, be sure that you know what the laws of your state are. Each state has its own set of rules regarding personal bankruptcy. For instance, some states protect you from losing your home in a bankruptcy, but not in others. You should be familiar with the laws for your state before filing.
Do not use a credit card to manage your tax issues and then file for bankruptcy. In most states, this debt won’t be discharged, and in the end you will be left owing the IRS a big sum of money. This means using a credit card is not necessary, since bankruptcy will discharge it.
You have other options available like counseling for credit counselling services. Bankruptcy is a permanent part of your credit, you should search through every available option first, it is in your best interest to make use of them.
Always be honest when it comes to your bankruptcy petition.
Don’t avoid telling your attorney of any specific details of your case. Don’t assume that they’ll remember it automatically. This is your future in their hands, so do not be afraid to remind your lawyer of any key facts.
You might experience trouble with getting unsecured credit card or line after filing for bankruptcy. If you do, instead you should turn your attention to secured credit cards. This will show people that you are serious about getting your credit rating. After using a secured card for a certain amount of time, you will then be able to acquire credit cards that are unsecured.
If you can, this should be a lawyer you focus on.There are a number of companies who may take advantage of your situation, so you must ascertain that your attorney can be trusted.
The Bankruptcy Code provides a list of various asset types that are not included in the bankruptcy process. If you fail to go over this list, you could be setting yourself up for a lot of stress when your most important possessions are taken in the bankruptcy.
Be sure you know how Chapter 7 and Chapter 13 bankruptcy cases. Chapter 7 bankruptcy is intended to wipe out your debt. All of your financial ties to the people you to creditors will disappear. Chapter 13 bankruptcy allows for a five year repayment plan that takes 60 months to work with until the debts go away.
Filing for bankruptcy does not mean that you will lose your home. Depending on certain conditions, you might be able to keep it. You may also want to check into homestead exemption either way just in case.
Look at all of your options before you choose to file for bankruptcy. Loan modification can help you get out of this. The lender can help your financial situation by getting interest rates lowered, so they may be willing to forgive some fees, and in some cases will allow you to pay the loan over a longer period of time. When all is said and done, the creditors want their money, and they are willing to make concessions to get it and prevent the debtor from declaring bankruptcy.
Bankruptcy is not a chance happening in anyone’s life. Several steps must be completed, and completed accurately. If you apply the tips above, it is possible to be certain that your case is handled cleanly and thoroughly.