Simply mentioning the word bankruptcy can cause people to become nervous and worried. A good number of families are having trouble containing their debt and managing their expenses. If these circumstances sound familiar, you stand to benefit from the tips that follow. Personal Bankruptcy And The Middle Class Family
How Personal Bankruptcy Will Work For You
After filing for bankruptcy, you could have trouble acquiring unsecured credit. In this event, you should attempt to apply for a secured card or two. If you pay what you owe back promptly at all times, you can show that you are taking steps to be responsible about your payments and credit rating. When you have done well with secured cards for a while, you should be able to obtain an unsecured credit card.
Look for a bankruptcy lawyer that comes from a personal recommendation instead of someone random on the Internet or in the yellow pages. There are a number of companies who may take advantage of your situation, so always work with someone that is trustworthy.
If you are thinking about paying off your tax obligations with a credit card and then filing bankruptcy, think again. Most places will not consider the debt dischargeable, meaning you will have to pay the IRS a lot of money. If the tax can be discharged, so can the debt. So using your credit card to pay off your tax obligations, then filing for bankruptcy, can actually hurt you instead of help you.
Don't be afraid to remind your attorney of certain details in your case. Just because you have told him something of importance that he will remember it. All information submitted to the court with your signature needs to be double checked.
How Personal Bankruptcy Will Work For You Before you decide to file bankruptcy, be sure to check for any new laws that may apply to your case. If you want to file for bankruptcy successfully, it's important to review the latest applicable laws. They tend to change frequently. To learn about any changes, search the Internet or contact your state's legislative office.
Understand the differences between Chapter 7 and Chapter 13 bankruptcy. Read up on the topic and familiarize yourself with the benefits and drawbacks of both variations. Once you have done your own research, be sure to review your findings with your lawyer, who is the expert. This way, you can be sure of making a well informed choice.
Take steps to ensure your home is protected. You don't have to lose your home just because you are filing for bankruptcy. If your home has significantly depreciated in value or you've taken a second mortgage, it may be possible to retain possession of your home. Otherwise, there is a homestead exemption you should look into, as it might let you stay in your house.
As was stated before, the option of filing for personal bankruptcy should be kept open. But, because of the effect it has on one's credit, it shouldn't be the first choice. Arming yourself with knowledge is a good way to protect assets and approach the process wisely.