Whatever led you to declare bankruptcy is probably very sad, but that doesn’t mean that you can’t have a better life after bankruptcy. The point of bankruptcy is to have a clean slate and a fresh start. Keep reading to see how bankruptcy can actually give you a new lease on life, rather than function as a permanent financial albatross.
Generally bankruptcy is filed when a person is facing insurmountable debt. If this applies to you, be sure that you know what the laws of your state are. Each state has its own laws regarding personal bankruptcy. For instance, your home might be protected in some states while you might lose it in others. You should be aware of local bankruptcy laws before filing.
Don’t look at bankruptcy as a first step. Look at all the other options you may have first. Consider any other options that are available to you, such as consumer credit counseling. Be sure to consider all options before filing for personal bankruptcy, as this will take a large toll on your credit score for the next ten years.
If you are thinking about paying off your tax obligations with a credit card and then filing bankruptcy, think again. In some places the debt can not be discharged, and you may still need to pay the IRS afterward. Bear this in mind; if the tax can be discharged, then the debt can be as well. So using your credit card to pay off your tax obligations, then filing for bankruptcy, can actually hurt you instead of help you.
You might experience trouble with getting unsecured credit after filing for bankruptcy. If you do, then try applying for a coupe of secured cards. This will allow you to start building a good credit history while minimizing the bank’s risk. After using a secured card for a certain amount of time, you might be offered an unsecured card once again.
No matter what, don’t give up! Filing a bankruptcy petition might facilitate the return of your property, including cards, electronics or other items that may have been repossessed. If you have any property in repossession that was taken less than three months before filing for bankruptcy, then there are good odds that you can get your property back. Get the advice of a qualified attorney who can advise you about ways to accomplish this.
When you feel certain that you must file for personal bankruptcy, refrain from squandering your life savings to pay off unsecured debt. Avoid ever touching retirement funds until you have no other choice. You may need to tap your savings, but don’t empty your savings account, as this could leave you in a difficult situation down the road.
Take advantage of the opportunity to consult with a number of bankruptcy lawyers who offer the first visit at no charge. It is important to meet with the actual attorney, not the attorney’s assistant or paralegal; those people are not permitted to give legal advice It will be important to work with a bankruptcy lawyer that you feel comfortable with; a little comparison shopping will help you find the right one.
As stated earlier, anything that leads someone to bankruptcy is not a good story. Even though that is the case, you should not allow it to depress you in any way. If you put the ideas you learned in this article into practice, you can write a whole new financial story and live happily ever after.
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