Although circumstances leading to bankruptcy may not be positive, life following bankruptcy can be. The bankruptcy laws allow you to have a second chance at building your credit and meeting all your financial responsibilities. Keep reading for how you can make bankruptcy a second chance instead of financial doom.
Lots of people have to claim bankruptcy when their bills are larger than their income. If this applies to you, be sure that you know what the laws of your state are. Laws differ from one state to the other. For instance, in some states, you can’t lose your home to bankruptcy, while in other states, you can. Be aware of bankruptcy laws before filing your claim.
Do not attempt to pay your taxes with your credit cards and subsequently file for bankruptcy. In some places the debt can not be discharged, and you may still need to pay the IRS afterward. If the tax has the ability to be eliminated, the debt can be too. So it does not help you to put the tax bill on your charge card if you know the debt will be discharged anyway.
Be sure you’re doing what’s right before you file for bankruptcy. It is possible to take advantage of other options, like consumer credit counseling. Your credit record will be harmed by a bankruptcy filing, and therefore prior to making such a decision, it is wise to investigate other options in order to minimize the damage you suffer.
It is essential when going through bankruptcy that all of your income and assets are reported openly and honestly. Withholding or lying about certain information can seriously worsen your financial situation. It could lead to being unable to file for bankruptcy or even legal trouble.
Once the bankruptcy is complete, you may find it difficult to receive unsecured credit. Secured cards can be a great way to get started if this happens to you. This will show other people that you’re serious when it comes to having your credit record in order. After a time, you are going to be able to have unsecured credit cards too.
Do not despair, as it’s not the end of the world. Many times you can get repossess property back once bankruptcy has been filed. You may be able to recover repossessed property if the repossession occurred fewer than 90 days ago. Consult with a lawyer who can advise you on what you need to do to file a petition.
Don’t file for bankruptcy the income that you get is bigger than your bills. Although bankruptcy may feel like a simple method of getting out of your large debt, it leaves a permanent mark on your credit history for up to 10 years.
It is possible to obtain new vehicle and home loans while a Chapter 13 case remains active. This is a lot harder. Normally, the trustee assigned to your bankruptcy must approve any new loan. When meeting with the trustee, bring a budget which shows that you will be able to afford the payment on the loan you are trying to get. You’ll also need a valid reason for making the purchase.
Be aware of the fact that you may be under a great of stress while you deal with your bankruptcy. By hiring a competent attorney, you can alleviate some of that stress. Don’t skimp when hiring a good lawyer. When it comes to choosing the right attorney, consider quality before cost. Rely on word-of-mouth referrals from others who have filed for bankruptcy, check the BBB, and take advantage of free consultation offers. If you really want to check up on them check out how well they do at court hearings.
Be sure you know the bankruptcy laws before you think about filing. As an example, it is prohibited for someone to transfer assets from the filer’s name for one year prior to filing. It’s also prohibted to run up debt on credit cards just prior to filing.
In conclusion, most circumstance that lead to bankruptcy are not positive. However, once this chapter is written it is done and you can begin to start fresh. Follow the advice from this article, and use personal bankruptcy to get your fresh start.