On The Verge Of Bankruptcy? These Tips Are Here To Help!

July 31, 2013

TIP! If you are considering using credit cards to pay your taxes and then file for bankruptcy, you may want to rethink that. Most of the time, you won’t be able to discharge this debt, and you could make things worse with the IRS.

The path to bankruptcy is not normally a happy one, but your life can improve once the filing has occurred. Wiping the slate clean means having a new lease on life. Keep reading for ways to experience bankruptcy as a positive thing.

TIP! If filing bankruptcy is in your future, don’t waste any savings you may have attempting to pay off your debts. You should not use your retirement savings unless the situation calls for it.

Filing for bankruptcy is something many people are forced to do when there debts become too much of a burden, and they can no longer afford to pay them. If this describes your situation, it makes sense to become familiar with relevant laws. You will find that each state has their own bankruptcy laws. Your house is safe in certain states; however, in other states, it isn’t. Before filing for personal bankruptcy, be certain that you are familiar with the laws.

TIP! 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. Companies are constantly popping up, claiming to help, yet only seek to profit from your misery.

You can find a wealth of information concerning personal bankruptcy by searching for websites which offer information about it. The United States Department of Justice and American Bankruptcy Institute are both sites that provide free advice. The more you know about it, the better you are able to make the best decision for your situation and to make sure that the bankruptcy proceedings move forward with minimal setbacks.

TIP! You should be able to meet with a specialized lawyer for free to ask your questions. Most attorneys offer free consultations, so meet with a number of them before you retain one.

Always remind your lawyer of specifics that are important to your case. Inaccurate or incomplete information can lead to your petition being denied. Do not hesitate to speak up; this is your hearing and your future is on the line.

Secured Card

TIP! Before you decide to declare bankruptcy, make sure that a less-drastic solution isn’t more appropriate. For example, if you only have a little bit of debt, you might be better off if you went through consumer credit counseling.

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. In this event, you should attempt to apply for a secured card or two. By doing this, you will be letting people know that you want to fix your credit score. If you pay your secured card off on time, you’ll eventually find that companies will start offering you unsecured credit.

TIP! There are two types of personal bankruptcy: Chapter 7 and Chapter 13. Make sure you know what each entails so you can make the right choice.

As stated in the above article, anytime someone is forced into bankruptcy is never a happy situation. On the other hand, the new beginning that bankruptcy offers can lead to a new life story. Follow the advice from this article, and use personal bankruptcy to get your fresh start.