Although unhappy circumstances in your life might have led you to file for bankruptcy, your life post-bankruptcy can be much better. Maybe what you need is a fresh start. You can find this by filing a bankruptcy claim. Keep reading to handle the bankruptcy process in a way that is a rebirth and not a financial Armageddon.
You should avoid paying your taxes with credit cards and then immediately 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. Bear this in mind; if the tax can be discharged, then the debt can be as well. It is pointless to use credit cards if they can be discharged.
Don’t avoid telling your lawyer specific details with your case. Chances are that you may have forgotten to tell them about certain specifics that may be important to your filing. This is your future in their hands, so don’t be scared to mention it.
Before making the decision to file for bankruptcy, be sure you have considered alternative options. There are numerous programs out there that may assist you with your debt, like a credit counseling program, a nonprofit group, government assistance, etc. You might also be able to negotiate lower payments yourself, but make sure that you get written records of any debt modifications to which you agree.
Many bankruptcy attorneys offer the first consultation with no charge, so consult with several before deciding on one. Make sure that you meet with an actual lawyer and not an assistant or paralegal, as these people are not allowed to provide legal advice. Seeking out different attorneys is all part of the process until you find someone that you can trust.
Do not let bankruptcy consume you, make sure you make time for your friends and family. The process of bankruptcy can seem brutal. It is long, full of stress and leaves individuals having feelings of shame and guilt. There are a number of people who wish to go into seclusion while undergoing the process of personal bankruptcy. However, this isolation will just make you feel worse, and it could cause you to be depressed. Time spent with people who care about you can give you new perspective on your financial situation.
Talk with your lawyer about getting lower payments for any car you wish to keep. Chapter 7 bankruptcy is one of the most common and effective. The vehicle must have been obtained more than 90 days before filing and be a loan with high interest. You must also have consistent work history.
Before you file your petition, be sure that you understand personal bankruptcy rules. There are many traps in the bankruptcy laws that could trip up your case. A variety of mistakes will lead to dismissal of your case. Take time to research things related to personal bankruptcy before you move forward. This will make things easier in the long run.
Make sure you are aware of all your options before you file for bankruptcy. Think about seeing a credit counselor. There are non-profit organizations that you can use. They will negotiate with your creditors in order to reduce your payments and interest rates. You pay them and then they pay the creditors.
If you believe that bankruptcy proceedings may be the answer to your financial woes, you should make haste to learn about the process. It’s hard to admit you need assistance, but the longer you decide to wait, the worse the debt can get. Take responsibility to talk with a bankruptcy expert sooner, rather than later. The longer you wait, the more difficult the situation can become.
After filing bankruptcy, many people refuse to use credit cards or get loans. This is actually a poor idea because credit helps to build good credit. Credit cards are necessary for proving that you have gained financial stability and for garnering mortgage and auto loan approvals. Take it slow and get yourself one credit card and slowly rebuild your credit.
Don’t wait until after filing for bankruptcy to become more responsible with your finances. Don’t use credit cards to acquire more dent right before filing. When creditors and the judge are deciding on your case, they will consider your current credit history as well as your past credit mistakes. Show that you are making a positive change to your current financial situation.
Don’t believe the myth that declaring bankruptcy means you lose everything you own. Your personal items will stay with you. In other words, your clothes, your television, your computer, your furniture, your jewelry and other household items are safe. This will all depend on the type of bankruptcy you choose, your finances, and your state’s laws, but you could hold onto your large assets like the car and the family home.
Learn from the mistakes you made that sent you to bankruptcy court. Yet after bankruptcy, you can be happy again. The truth is, that by using the tips in this piece, it is possible to make bankruptcy a positive experience that gives you the fresh start you need.