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Bankruptcy Made Simple With These Easy Tips

Be sure everything is clear to you about personal bankruptcy via looking at websites on the subject. The United States Department of Justice, NACBA, and American Bankruptcy Institute websites are all great places to go for up-to-date information. As with everything in life, the more you know about filing a claim, the better off you’ll be. You can properly prepare when you know what you’re preparing for.

TIP! Do not try to get clever by paying your taxes via credit card before you declare bankruptcy in an effort to dodge your tax burden. In most states, you will still owe money to the IRS and have to take care of the interest of your credit cards.

If you are considering filing for bankruptcy, your life probably hasn’t been so great recently, but that doesn’t mean things can’t improve once you file. Bankruptcy is all about giving you a fresh start. Keep reading for ways to experience bankruptcy as a positive thing.

You might experience trouble with getting unsecured credit after filing for bankruptcy. This being the case, look at secured card options. 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. After a time, you are going to be able to have unsecured credit cards too.

TIP! Instead of relying on random selections from the phone book or Internet, ask around and get personal recommendations. There are so many dime-a-dozen companies out there who make it a practice of preying on financial desperation.

Do not even think about paying your taxes with credit and petitioning for bankruptcy right after. Credit card debt is handled charge by charge during bankruptcy, and in most states, tax debt cannot be discharged through bankruptcy. Remember that if you can discharge the tax you can discharge the debt. So, there is no reason to use your credit card if it will be discharged in the bankruptcy.

Prior to filing your bankruptcy petition, go over the list of assets that cannot be seized by creditors. The Bankruptcy Code provides a list of all the different kinds of assets that you can exclude. You can determine exactly which of your possessions are at risk by consulting this list before you file. If you aren’t aware of this, you could lose some assets that you value.

TIP! You may have heard bankruptcy referred to differently, either as Chapter 7 or Chapter 13. Learn the differences between the two before filing.

Before you proceed with your personal bankruptcy case, review your decisions to be certain that the choice you are making is the right. There are plenty of other options open to you, like consumer credit counseling. Since your credit history will forever note the bankruptcy, you want to make sure that you have tried everything else before you take an action such as this, in order to minimize the effect it will have with regard to your credit history.

Find out more about Chapter 13. In most states, Chapter 13 bankruptcy law stipulates that you must have under $250,000 of unsecured debt and a steady income. Not only can you repay your debts through consolidation, personal property can be kept, as well as real estate. Typically, this goes on for roughly three to five years, and once this time has expired, your unsecured debt is eliminated. Remember that missing a payment to the plan will result in your case being dismissed.

TIP! Remember to have fun with your life when you’re done with the filing process initially. It’s not uncommon to be overwhelmed by the filing process.

As bankruptcy appears on the horizon, don’t take your savings or retirement accounts to try to pay off all your bills. You shouldn’t dip into your IRA or 401(k) unless there is nothing else you can do. While you may have to use a part of your savings, never completely wipe it out which would only leave you in worse financial shape in the future.

It is still possible to get a mortgage or car loan, even if you are filing for Chapter 13 bankruptcy. Of course, it’s difficult. First, your trustee will have to approve the loan. Document your budget to prove that you’re going to be able to make the payments. You will need to be able to explain why the purchase is necessary.

TIP! Consider all of your options before filing for bankruptcy. Think about seeing a credit counselor.

Although you can find many bankruptcy attorneys listed in your local Yellow Pages or online, it’s best if you can find one through the personal recommendation of a friend, family member or acquaintance. To handle your bankruptcy, you need a trusted attorney, not a shady one that is out to take your money.

Some people don’t know that bankruptcy can actually help your credit more than making late or no payments to your creditors. Bankruptcy can be seen on your credit history for 10 years, but you can begin repairing the damage immediately. Bankruptcy can give you the fresh start you need.

TIP! Although it is tempting to toss out the idea of ever owning credit cards again, think again. Although this may seem plausible, this actually isn’t doing them any good.

Be honest when filing for bankruptcy, because hiding liabilities or assets can only cause trouble to you. The person you choose to file with needs to know both the good and bad aspects of your finances. Don’t hold back information and create a strategy so you can deal with what’s really happening.

List each of your debts clearly and efficiently. This will be your basis in filing for bankruptcy, so see to it that you write down all of the debts you’re aware of. Double check all of your records so that you do not overlook anything. It is important that you take your time here; you need to ensure your figures are correct if you want to get these amounts discharged.

TIP! Certain attorneys offer a phone service that creditors are directed to when they want to speak with you about debts you may owe. All you have to do is give the creditors this number.

Do not give up. When you file for bankruptcy you may be allowed to recover property like your car, electronics or jewelry that might have been repossessed. 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.

Filing for a different type of bankruptcy is a good idea if you think you will lose your home. Try Chapter 13 instead of Chapter 7. It might even be better to convert from a Chapter 7 to a Chapter 13; talk to your lawyer about this.

TIP! If there is an error and your bankruptcy claim is closed, it is possible to file again. But, most of the time, you only get an automatic stay for thirty days after filing if the case was previously dismissed.

Consider other alternatives before filing for bankruptcy. For example, if your debt is small, try a type of consumer counseling program. You may also find success in negotiating lower payment arrangements yourself, but be certain to get any arrangements with creditors in writing.

Just because you are facing stiff taxes does not mean that a bankruptcy can work for you. Some people who file pay their taxes with credit cards, then immediately file for bankruptcy on those cards. They do that because they think they can get out of paying taxes because the amount is on their credit card. However, legislation concerning bankruptcy forbids this and leaves you stuck with owed taxes and interest accrued.

Chapter 7

Be honest when filling out your bankruptcy petition. Your petition could be immediately dismissed by the court if they discover you have been lying. Always mention any income or assets relevant to proceedings. Do things on the up and up, and your outcome will likely be favorable.

TIP! Be sure you know what the attorney you hired is up to during the whole personal bankruptcy process. You need to know what is happening and should not be scared to call the attorney and ask.

You need to educate yourself on the differences between Chapter 7 and Chapter 13. Should you choose Chapter 7, your total debt load will be erased. All creditor relationships will be severed. A Chapter 13 filing involves a repayment plan, though. Typically, you will make a partial payment against your debts over the next 60 months before the balance of the debts is lifted. You need to be aware of the pros and cons of each type of bankruptcy so you can correctly select the best choice for your situation.

Before you make the decision to file for bankruptcy, be sure to study all of the applicable rules and regulations. Have a careful look at your debt and ascertain if you could relieve a lot of it via bankruptcy. If you have incurred certain debts within a period of 90 days after declaring bankruptcy, you may not be able to be discharged. Be certain to know the laws that apply in your jurisdiction.

TIP! Carefully consider which type of bankruptcy is right for you. There is more than one type of bankruptcy.

Put forth the effort to grasp the distinctions between Chapter 7 and Chapter 13 bankruptcies. Do some research about these options so you can choose the best one. If you don’t understand the information you researched, consult with your attorney about the details before you decide which type of bankruptcy you want to file.

If you plan to file bankruptcy, do not continue using credit cards. It can be tempting to go on a buying spree, but the courts will frown on it. Practice sound financial management to the greatest degree that you can. It is a good way to start forging good financial habits that you can use for the future.

Chapter 13

To rebuild your credit after filing for bankruptcy, try opening new credit lines. Secured credit cards provide those with poor credit the option of rebuilding their credit, without going more into debt. While the rates on these are elevated, you will typically pay larger rates no matter where the credit is coming from. You’re more likely to get the loan you need if you have a line of credit that demonstrates a positive credit history.

TIP!

If you are going to be filing for bankruptcy, think about filing Chapter 13. Chapter 13 bankruptcy is a good choice for people whose unsecured debts amount to lower than $250,000 and who receive a regular income. This lets you keep any real estate and personal property while you repay all your debts through a consolidation program. The plan is usually for a term of three to five years, and a discharge will be granted at the end of that term. Remember that missing a payment to the plan will result in your case being dismissed.

TIP!

If you are about to file for bankruptcy, you have probably been through tough times lately. But, that does not mean life after bankruptcy has to be negative. Try using the tips in this article so you can make bankruptcy into the most positive experience possible.

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