The Impact Of A Personal Bankruptcy On Your Credit

June 23, 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 this describes your situation, it makes sense to become familiar with relevant laws.

Anytime you are faced with the prospects of filing for bankruptcy, it is not a good situation, but there is some light at the end of the tunnel when you get through this process. The main purpose is to give yourself a fresh, new start in life. Completing the bankruptcy process properly can lead to a new financial future.

TIP! Do not use a credit card to pay income taxes and then file for bankruptcy. In some places the debt can not be discharged, and you may still need to pay the IRS afterward.

You should check with the personal bankruptcy resources available online to educate yourself thoroughly before you begin the process. The United States DOJ, along with a number of other bankruptcy institutes and attorneys specializing in bankruptcy can give you invaluable information. The more knowledge you have, the more you are able to make right decisions and find a new future.

TIP! If you are faced with the choice of filing for bankruptcy or using your emergency fund or retirement accounts to pay creditors, opt to file for bankruptcy. You should never touch your retirement accounts, unless you have absolutely no choice.

Always be honest when filling out paperwork. Do not try to shield some assets or income from your creditors. This can get you in serious trouble and prevent your bankruptcy petition altogether.

TIP! Always be honest with the information you give about your finances. Do not hide any income or assets or go on a spending spree before filing for bankruptcy: the court will find out and will not have a positive opinion of you.

Ask those you know if they have an attorney to recommend, instead of finding one on the Internet or in the phone book. There are a number of companies who may take advantage of your situation, so always work with someone that is trustworthy.

TIP! Do not be afraid to remind your attorney of important specifics of your case. You cannot expect your lawyer to remember every important detail without some reminder from you.

Keep at it! Bankruptcy might help you get back things you thought you’d lost and had repossessed, such as electronics, vehicles and jewelry. If the repossession occurred within 90 days from your filing date, it is possible that some of your property can be returned to you. Talk to your lawyer to find out how to go about properly filing a petition.

TIP! Bankruptcy is tricky and hiring a good lawyer will be a must. The topic of bankruptcy is a complicated one and it is important that you know all about it.

Learn from the mistakes you made that sent you to bankruptcy court. Yet after bankruptcy, you can be happy again. In fact, if you apply the ideas and advice given in this article, you can truly make bankruptcy a turning point in your life towards better days.