Great Advice For Anyone Looking To File For Bankruptcy

August 27, 2013

TIP! It is simple math; when you owe more than you are able to pay off, a bankruptcy is the likely solution. If this sounds like you, start familiarizing yourself with your state laws.

Stress, anxiety and depression are emotions many people feel when they are faced with bankruptcy. They may feel trapped in their debt, wondering how to survive the next day. You are never truly stuck — there are always options that you can pursue that may include filing personal bankruptcy; keep reading for more information.

TIP! Do not pay your taxes with credit cards that will be canceled when you file for bankruptcy. In most states, this is not dischargeable debt.

Many people find that they must file for bankruptcy protection because they have more debt than they can afford to repay. When you get into this situation yourself, your first step is to familiarize yourself with your local bankruptcy regulations. Laws differ from one state to the other. For instance, some states protect you from losing your home in a bankruptcy, but others do not. Become acquainted with local bankruptcy laws before filing.

TIP! Ask yourself if filing for bankruptcy is truly your best option. There are other options available, such as credit counseling for consumers.

If you are truly faced with bankruptcy, avoid blowing your savings or retirement money, trying to pay off debts. You should never touch your retirement accounts, unless you have absolutely no choice. While you may have to use a part of your savings, never completely wipe it out which would only leave you in worse financial shape in the future.

Obtain Unsecured Credit

TIP! Always be honest when filling out paperwork. Lying on your filing can cause dire consequences such as: delays, penalties, being prevented from re-filing, or even jail time.

It can be difficult to obtain unsecured credit once you have filed for bankruptcy. Look into getting a secured credit card in order to get back on your feet with building credit. Having a credit card of any type will allow creditors to realize that you’re attempting to work in the right direction to repair your credit. Eventually, you could be able to obtain unsecured credit.

TIP! If you aren’t totally honest about your assets when filing a bankruptcy petition, you could get into serious trouble. The lawyer representing you when you file needs to have full knowledge of your financial situation.

Now that you’ve read this article, I hope you can see that having personal bankruptcy doesn’t necessarily mean doom for you. Though it is very difficult, personal bankruptcy is not the end. Stick with the information presented here and over time you will be able to slowly crawl out from under the mountain of debt you have accumulated.