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Shedding Light On The Steps For Bankruptcy


Anything that leads you to declaring or filing for bankruptcy is probably not a happy story, but that does not mean that your life after bankruptcy cannot be better. The main purpose is to give yourself a fresh, new start in life. Read on for how to make the bankruptcy process be a rebirth instead of financial Armageddon.

Familiarize yourself with any new law before you make the final step to filing for bankruptcy. The laws are constantly undergoing changes, so you must stay on top of them if you are going to file for personal bankruptcy correctly. Keep up with your current state’s laws and regulations to figure out what steps you should take.

Know your rights when filing for bankruptcy. Bill collectors can try to scare you into believing that your debt will not be cleared. Only a few debts, including child support and tax liens, are ineligible for bankruptcy. If the bill collector is trying to deceive you, then report that company to your local attorney general’s office.

Look for new credit options when you begin to rebuild from your bankruptcy. This is sometimes difficult with bad credit, but secured credit cards are a viable solution. You will see high rates on these cards, but this is going to be the case with any credit you get at this time. Using this secured card responsibly will help your credit score and make it more likely that you’ll be approved for other cards and loans.

Know that bankruptcy can be much better for your finances than missing payments or making late payments on debts. Bankruptcies can remain on your credit reports for 10 years, you can jump right into repairing your credit. One of the nicest things about bankruptcy is that it gives you a fairly fresh start.

If you acquire a new job prior to filing for bankruptcy, keep moving forward with your filing plans. Bankruptcy may still be what is best for you. The timing of filing is a huge factor. If you can file for bankruptcy before receiving additional income, this extra money won’t count against you.

Scour your brain for any questions you can think of, then bring them to lawyers you consult with. Lawyers are pretty expensive. Having a concise and well-thought out list will save both you and your lawyer time and will surely save you money. See to it that you understand everything that is going on.

Typically, people who have faced bankruptcy swear off credit cards. That is not a great idea, because using credit builds better credit. If you don’t ever use credit, your credit history will not improve, and you may not be able to purchase important things like a home and car. Start with having a single credit card to help you go in the proper direction.

Don’t avoid telling your lawyer specific details with your case. Do not assume that if you’ve already told him or her something important once, that they will remember it later without a reminder. Ultimately, this is your bankruptcy and your financial future, so never hesitate to advocate on your behalf.

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. You will find few states that discharge this kind of debt. You may also wind up owing a lot of money to the IRS. Generally speaking if you can discharge the tax, you can discharge the debt. It is pointless to use credit cards if they can be discharged.

As previously stated, the reasons for filing for bankruptcy are not generally a happy fairy tale. But, that does not mean that your post-bankruptcy life cannot be fantastic. The truth is, that by using the tips in this piece, it is possible to make bankruptcy a positive experience that gives you the fresh start you need.