Having Financial Issues? Have You Considered Bankruptcy?

August 7, 2013

TIP! Do not pay your taxes with credit cards that will be canceled when you file for bankruptcy. Most states do not look at this debt as chargeable, and you could end up owing money to the IRS.

You’ve heard it before and you’ll hear it again–the economy is in rough shape. The cycle of a tough economy leads to people losing jobs and going into debt. Rising personal debt leads, in many cases, to increased bankruptcy filings. When you or a loved one is contemplating bankruptcy, it is important to read the following piece in order to understand available alternatives.

TIP! After you have declared bankruptcy, you may have a hard time being approved for unsecured credit. Secured cards can be a great way to get started if this happens to you.

Always be honest when filling out paperwork. Not hiding any assets or income is essential for avoiding possible penalties and your ability to re-file at some point in the future.

TIP! Prior to putting in the bankruptcy paperwork, determine what assets are protected from seizure. Check the bankruptcy laws in your state to find out if certain items are excluded from your bankruptcy filing.

Getting unsecured credit post-bankruptcy will likely be difficult. If this happens to you, think about applying for a couple of secured credit cards. This at least shows you are making an honest attempt at reestablishing your credit worthiness. If you pay your secured card off on time, you’ll eventually find that companies will start offering you unsecured credit.

TIP! Prior to declaring bankruptcy you really need to be sure that you’ve exhausted all your other options first. For example, if your debt is small, try a type of consumer counseling program.

Don’t pay for the consultation with a lawyer who practices bankruptcy law; ask a lot of questions. Most attorneys offer free consultations, so meet with a number of them before you retain one. Do not make any final decisions until every question you have has been answered. You do not have to give them your decision right after the consultation. Take the time to meet with a number of attorneys.

TIP! It is important to protect your home when filing bankruptcy. Filing for bankruptcy doesn’t automatically involve losing your home.

Brush up on the latest bankruptcy regulations before you decide whether or not to file. These kinds of laws are constantly changing and it is important that you are aware of these changes, so that you can learn how to properly file for bankruptcy. To learn how the law has changed recently, go online and check your state’s website, or call the state government and ask them.

TIP! Before you file for bankruptcy, make sure you absolutely need to. You may be able to manager gets more easily by consolidating them.

While some new jobs are beginning to pop up, many people are struggling to find decent income; in fact, many people searching for any job. Even if you do not have a steady paycheck, you still have options to help you avoid filing bankruptcy. Bankruptcy can be a difficult journey; however, the process can be made easier by learning the aforementioned information. Hopefully better things await you in the near future.