Bankruptcy Tips And Advice From The Experts
Bankruptcy is a hard decision, but sometimes a necessary one. It will be easier to go through the process if you have a good idea of what is involved. Ahead, you will find information from others like yourself, who have struggled with bankruptcy and its effects.
Think twice if you have struck upon the idea of paying off your taxes by credit card and subsequently filing for personal bankruptcy. Credit card debt is handled charge by charge during bankruptcy, and in most states, tax debt cannot be discharged through bankruptcy. If the tax can be discharged, so can the debt. Therefore, you should not pull your credit card out for purchases if it is just going to be discharged during the bankruptcy.
licensed moneylender singapore facts 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 this happens to you, think about applying for a couple of secured credit cards. This will show people that you are serious about getting your credit record back in order. If you pay your secured card off on time, you'll eventually find that companies will start offering you unsecured credit.
You are going to get found out and get in trouble if you don't disclose all your assets, so be totally honest from the beginning. Good or bad, you must tell your bankruptcy attorney everything about your financial situation. Telling the truth will allow you reach a solution that is feasible, given your current situation.
A free consultation is standard for bankruptcy attorneys, so shop around before settling on one. Ask to speak with the licensed attorney and not a representative, who can not offer legitimate legal counsel. By shopping lawyers, you will be more likely to find one that makes you comfortable about the process.
Do not file for bankruptcy if your income is greater than your bills. Remember that the record of your personal bankruptcy filing will be discernible on the report of your credit for as many as 10 years. For this reason, bankruptcy filing should not be taken lightly.
Consider Chapter 13 bankruptcy, if you chose to file. In most states, Chapter 13 bankruptcy law stipulates that you must have under $250,000 of unsecured debt and a steady income. Filing a Chapter 13 will let you keep personal items and real estate while you pay down your debt in a consolidation plan. This repayment period usually lasts from three to five years. If you make your payments faithfully during that time, any remaining unsecured debt will be eliminated. Just ensure that you take necessary precautions, as missing one payment can result in the court dismissing your case.
It is important to protect your home when filing bankruptcy. You don't have to lose your home just because you are filing for bankruptcy. If your home has significantly depreciated in value or you've taken a second mortgage, it may be possible to retain possession of your home. You may also want to check out the homestead exemption because it may allow you to keep your home.
Don't forget to enjoy yourself during your bankruptcy. Many debtors stress-out during the time of filing. That stress can cause depression, if you don't take care to avoid it. You must realize that things will get better over time.
As stated previously in this guide, personal bankruptcy can always be an option. But, filing ought not to be an automatic decision, as it does have serious implications. Staying informed about how to handle this situation can save a lot of headache and allow someone to keep their valuables.