A Fresh Start For You Through Bankruptcy?

August 3, 2013

TIP! If you are in a position where you are unable to pay your debts, bankruptcy may be the only option for you. If you’re in this position, it is a good thing to familiarize yourself with the laws that apply in your area.

Is your financial situation bad and you think the only solution is bankruptcy? Do not despair, because there are other people in the same boat. Lots of people all over the world have used bankruptcy as a means to get themselves out of a troubled financial situation. So have a look through the contents of this article to see what you should know about bankruptcy.

TIP! Don’t be reluctant to remind your lawyer about specific details he may not remember. Don’t just assume that the attorney will remember it automatically.

Think twice if you have struck upon the idea of paying off your taxes by credit card and subsequently filing for personal bankruptcy. In many parts of the country, you cannot get this debt discharged, and in the end you will be left owing the IRS a big sum of money. Generally speaking if you can discharge the tax, you can discharge the debt. Therefore, you should not pull your credit card out for purchases if it is just going to be discharged during the bankruptcy.

TIP! After a bankruptcy, you may still see problems getting any kind of unsecured credit. If you are in this situation, applying for a secured card may be the answer.

Once the bankruptcy is complete, you may find it difficult to receive unsecured credit. A great way to rebuild your credit is to apply for a prepaid credit card. You can exhibit your desire to rebuild your credit this way. Once creditors see that you are making an effort to restore your credit, they may allow you to get an unsecured card in the future.

TIP! Prior to putting in the bankruptcy paperwork, determine what assets are protected from seizure. Bankruptcy exemptions are properties may not be seized during bankruptcy.

Try to find a bankruptcy attorney who is personally recommended, rather than off the Internet, or out of the yellow pages. To handle your bankruptcy, you need a trusted attorney, not a shady one that is out to take your money.

TIP! Before filing for bankruptcy, hire a qualified attorney. Personal bankruptcy is quite complex, and it is entirely possible that you will not be able to familiarize yourself with all the laws and processes.

Don’t pay for an attorney consultation and ask him or her anything you want to know. Almost all lawyers will give a free consultation, so meet with more than one before making a decision on whom to hire. Therefore consult with different lawyers and get a feel for them, then decide which one suits your needs You do not have to give them your decision right after the consultation. That gives you the chance to speak to a number of lawyers.

TIP! Know the differences between Chapter 7 and Chapter 13 bankruptcy. Chapter 7 is the best option to erase your debts for good.

In conclusion, you aren’t alone when it comes to filing for bankruptcy. But since reading this article, you now have information that others don’t have. Use the information here to help see you through a smooth bankruptcy.