Anytime you are faced with the prospects of filing for bankruptcy, it is not a good situation, but there is some light at the end of the tunnel when you get through this process. The benefit of filing for bankruptcy is that you have a new beginning. The article you're about to read contains great information on bankruptcy and how you can proceed with filing a claim.
If you are considering using credit cards to pay your taxes and then file for bankruptcy, you may want to rethink that. The fact is that the credit card debt will be ineligible for discharge, and your tax debt may increase. The rule here is that if you can get the tax discharged then you can get the debt discharged. So, there is no reason to use your credit card if it will be discharged in the bankruptcy.
Helpful Advice For Dealing With Personal Bankruptcy Do not use your retirement fund or savings to pay off creditors. Leave your retirement accounts untouched unless there is absolutely no other alternative. Your savings accounts offer valuable financial security so try to leave them intact.
Tips, Techniques, And Advice For Anyone Considering Bankruptcy Be warned that after your bankruptcy, you may stand out as a leper to credit institutions. You may be unable to get a simple credit card. If so, apply for a secured credit card. This will be a demonstration of the seriousness with which you view rebuilding your credit rating. After using a secured card for a certain amount of time, you might be offered an unsecured card once again.
Helpful Advice For Dealing With Personal Bankruptcy Prior to filing for bankruptcy, determine which assets, if any, are exempt from being seized. The federal statutes covering bankruptcy can tell you exactly which assets are exempt from forfeiture to pay off creditors. Make sure that you review this list before you decide to file, to see if you can hang on to your most important possessions. If you don't read it, you could have nasty surprises pop up later due to your prized possessions being seized.
Don't pay for an attorney consultation and ask him or her anything you want to know. Free consultations are standard practice among bankruptcy lawyers, so interview multiple candidates before making a final decision. Choose an attorney who is experienced, educated and well-versed in bankruptcy laws. There is no need to feel rushed to decide to file after you talk with your bankruptcy lawyer. If you're unsure, don't hesitate to talk to multiple bankruptcy lawyers.
Protect your house. There are many options available to help protect you from losing your home. It depends what your home value is and if there is a second mortgage, as all this stuff comes into play when determining if you can keep the home. If this is not the case, find out more about Homestead Exemptions you might qualify for if you meet certain financial requirements.
Be certain that you can differentiate between Chapter 7 and Chapter 13 bankruptcy. Under Chapter 7 type bankruptcy, all debts are forgiven. You will no longer be liable for any money that you owe to your creditors. Chapter 13, on the other hand, involves a five year payment period before any remaining debts are cancelled. Both options have advantages and drawbacks, so do your research before deciding.
Sometimes in life things just happen which are out of your control. The article above has some powerful suggestions to get things back in control and manage the issues you face when filling for bankruptcy. Use what you've learned here to give yourself a second chance.