Having Financial Issues? Have You Considered Bankruptcy?

Having to file for personal bankruptcy can really make you feel like a number, or another faceless statistic in financial turmoil. With proper guidance, however, you can face this difficult time with your head held high, knowing that you have a brighter financial future ahead of you. This article aims to be that proper guidance.

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. Therefore, you have no reason for use of a credit card, if the amount is to be discharged in due process of the bankruptcy.

Stay positive. It can be really hard to stay positive when you are filing for bankruptcy, but a positive outlook can make everything seem to run more smoothly. Being angry and upset will not change the reality of the situation, so try to make the most of things. You will, at least, be able to feel better.

A huge mistake people make before filing for bankruptcy is maxing out their credit cards. This can lead to disaster when you file and the credit card companies might not discharge the debt. If you can, you need to stop using your credit cards at least six months before you file, and ideally for a year prior. Also, do your best to pay the minimum payments on these cards for at least six months before you file.

Consider hiring an attorney who specializes in personal bankruptcy. Although most states allow you to file for bankruptcy without a lawyer, your case could be dismissed if you don't fill out your paperwork correctly, and you may need to file additional motions to protect your property or discharge certain debts. A bankruptcy attorney can help ensure that you get the outcome you hope for when you file.

Do not hesitate to remind your lawyer of any details regarding your case. Don't just assume they already know and that they have these important details committed to memory or written down. Do not hesitate to speak up; this is your hearing and your future is on the line.

If you are trying to rebuild credit after filing for bankruptcy, you should apply for secured credit cards. These can help you establish credit, but you have to make sure that they are one of the companies that report to the major credit bureaus, since all of them do not.

Be safe and hire an attorney for help. There are many websites these days that claim to walk you through the process of filing bankruptcy on your own. It is cheaper than using an attorney to get you through this time, but it leaves a lot of room for error. This is not something that you want to take chances on.

If you have co-signers on car loans, or others who are responsible for your bills, consider filing for Chapter 13 bankruptcy if you want to help them. If you file for Chapter 7, you may not have to pay anymore, but they are still responsible. Talk to the people involved, and think carefully before making a choice.

If you are going to be filing for bankruptcy, think about filing Chapter 13. If you have regular income and under $250K in unsecured debt, a Chapter 13 may be right for you. This lets you keep any real estate and personal property while you repay all your debts through a consolidation program. This plan normally lasts from three to five years, in which you'll be discharged from unsecured debt. However, if you are unable to properly commit to the plan you agree to, your case can be dismissed.

When your income surpasses your bills, you should not be filing bankruptcy. It can seem like bankruptcy can be an easy way to avoid paying back your debts, however it leaves a serious mark in your credit report that can last between seven and ten years.

Hopefully, you now know what you need to do, in order to address your personal financial crisis. Filing for personal bankruptcy can be emotionally overwhelming and difficult to understand. With good information, you should be able to tackle these problems and get yourself back on the path to good credit!

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Hooray folks I am Luke Melendez and I am a freelance writer. I started and love to write since I was at my Junior High. Hope to inspire many citizens in my job.