Personal Bankruptcy: Use These Tips To Help You Get Through It

July 18, 2013

TIP! Ask yourself if filing for bankruptcy is truly your best option. You have other options available like consumer credit counselling services.

Being buried in debt is a terrifying experience. Sometimes, financial issues just get out of control quickly. Once that happens, solutions may be difficult to find. This article will help you get through your bankruptcy with a minimum of hassle.

Credit Cards

TIP! Don’t hide assets or liabilities when filing for bankruptcy. Wherever you file, that court has to be made aware of all details regarding your finances, positive and negative.

You should avoid paying your taxes with credit cards and then immediately file for bankruptcy. Most of the time, you won’t be able to discharge this debt, and you could make things worse with the IRS. Transferring the debt to another medium (e.g. a credit card) won’t magically make a tax debt discharagable, either. So, in short, do not use your credit cards to pay off debts right before you file for bankruptcy.

TIP! Stay positive. Filing for personal bankruptcy may possibly enable you to reclaim your personal property that have been repossessed, like your car, electronics and jewelry items.

Don’t fear reminding your attorney of any specific details of your case. It is wrong to assume that your lawyer will remember every word you ever utter! Be as open as you can be to make sure your bankruptcy goes as well as possible.

TIP! It is wise to meet with several lawyers before making a final decision, take advantage of the free consultations to find one that is a good fit for you. By law, paralegals and assistants can not give legal advice, so be sure that you are meeting with an actual attorney.

After filing for bankruptcy, you could have trouble acquiring unsecured credit. If this happens, instead you should turn your attention to secured credit cards. Using a secured card not only helps to rebuild your credit, but it also keeps you from going more in debt with credit card bills. Unsecured credit may be offered to you quicker than you think after doing so.

TIP! Know and understand the difference between filing for Chapter 7 bankruptcy versus Chapter 13 bankruptcy. Read up on the topic and familiarize yourself with the benefits and drawbacks of both variations.

When looking for a lawyer to handle your bankruptcy claim, the best way to go is off of a personal recommendation instead of simply flipping through the phone book. You want your bankruptcy to go smoothly, and the Internet is rife with fly-by-night companies whose only goal is to prey upon the financially desperate.

TIP! Filing for bankruptcy is not the best choice if your monthly income is enough to cover your bills. Understand that while declaring bankruptcy will eliminate many of your debts, you will have difficulty obtaining credit and will pay more in interest for the credit you do receive for at least seven years.

There are times when the events of life can be quite overwhelming and you can feel quite helpless. Use what you learned from this article to regain control of your financial situation. Use these tips to see positive life changes.