If your valuable items are facing repossession, it can leave you feeling anxious or fearful. Put an end to the collection calls and come up with a plan that may involve filing for bankruptcy. Find out what you need to know before filing bankruptcy.
After your discharge, be more careful about acquiring debt. Some lender may offer credit cards to those who have filed for bankruptcy and want a new start. It is usually the case that such opportunities are accompanied by high interest charges. They can put you right back where you started unless, you exercise very good financial discipline.
Think twice if you have struck upon the idea of paying off your taxes by credit card and subsequently filing for personal bankruptcy. In a lot of places, the debt cannot be discharged, and you may still owe money to the IRS. In most cases, you can use the adage that “a dischargeable tax is a dischargeable debt.” So, there’s no reason to make use of a credit cards if it will not be discharged in bankruptcy.
If filing bankruptcy is in your future, don’t waste any savings you may have attempting to pay off your debts. You should never touch your retirement accounts, unless you have absolutely no 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.
It can be difficult to obtain unsecured credit once you have filed for bankruptcy. If that is the case, you should try applying for one, or two secured cards. Using a secured card not only helps to rebuild your credit, but it also keeps you from going more in debt with credit card bills. After a certain time, you will then be able to acquire credit cards that are unsecured.
If a personal recommendation comes your way, this should be a lawyer you focus on. To handle your bankruptcy, you need a trusted attorney, not a shady one that is out to take your money.
Before you decide to file bankruptcy proceedings, determine which assets will be safe. The Bankruptcy Code lists the kinds of assets which are exempted when it comes to the bankruptcy process. Make sure that you carefully look over this list prior to filing to discover if your valuable assets will be seized. If you fail to do so, things could get ugly.
Be honest when filing for bankruptcy, because hiding liabilities or assets can only cause trouble to you. The professional that helps you file for bankruptcy has to have a complete and accurate picture of your financial condition. Don’t hold anything back and formulate a smart strategy to deal with the reality you are facing.
Do not abandon hope. If you file for bankruptcy at the right time it could enable you to get your property back that you lost to repossession. If your property has been repossessed less than 90 days prior to your bankruptcy filing, there is a good chance you can get it back. A qualified bankruptcy attorney can walk you through the petition process.
You should not have to pay for an initial legal consultation, and such meetings are great opportunities to ask lots of questions. Nearly all attorneys offer free initial consultations, so you should be able to meet with a few before you make a final hiring decision. Choose to file only if your lawyer has convinced you that this is the best decision. It is not necessary to make a final decision right away. Take the time to meet with a number of attorneys.
Filing for personal bankruptcy is an option, but use it as a last resort after exploring all of your other options. Keep in mind that a number of debt consolidation services aren’t legit, and will only worsen your debt. Avoid debt in the future and make good financial choices by committing the tips presented here to memory.