Important Information To Know Before Filing Bankruptcy

August 14, 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 are in this position, you need to be familiar with the laws in your area.

Filing for personal bankruptcy is nothing kid around about. There are many factors involved in the bankruptcy process and it is crucial that you understand them. Apply the advice within this article to have guidance in the proper direction. No matter what tough decisions you have to deal with, you can do it!

TIP! Do not use a credit card to manage your tax issues and then try to file bankruptcy. In most states, this is not dischargeable debt.

Be certain to gain a thorough understanding of personal bankruptcy by using online resources. The United States Department of Justice, the American Bankruptcy Institute and the National Association of Consumer Bankruptcy Attorneys, all provide valuable information. Knowing is half the battle, after all, and these websites are the first step in learning what you need to know to make your bankruptcy smooth and stress-free.

Credit Cards

TIP! Don’t be afraid to remind your lawyer about important aspects of your case. Never assume that they can remember all details without reminders.

After a bankruptcy, you may not be able to receive any credit cards. If this happens to you, think about applying for a couple of secured credit cards. They offer you the chance to demonstrate the seriousness with which you now take your financial obligations. 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! Bankruptcy is tricky and hiring a good lawyer will be a must. Having a lawyer on your side is the best way to avoid mistakes and bad decisions.

When choosing a bankruptcy lawyer, your best option is to find someone who is recommended by someone you know versus someone who you find online or in the phone book. Don’t allow yourself to be taken advantage of by predatory lawyers just because you are filing for bankruptcy. It is important to find someone trustworthy.

TIP! Be certain to grasp the distinction between Chapter 7 and Chapter 13 bankruptcy cases. If Chapter 7 is what you file, your debts will get eliminated entirely.

Keep at it! Filing a bankruptcy petition might facilitate the return of your property, including cards, electronics or other items that may have been repossessed. You may be able to get your property back if fewer than 90 days have passed between the repossession and are filing for bankruptcy. Talk to a lawyer for help with the petition filing process.

TIP! Learn how Chapter 7 bankruptcy and Chapter 13 bankruptcy differ from each other. Investigate the benefits and pitfalls of both.

You can easily see that there are multiple ways to handle personal bankruptcy. Don’t let all the information and regulations surrounding bankruptcy overwhelm you. Take the time you need to think clearly and analyze the information. Doing this will allow all the information to be processed and benefit your decision making going forward.