Bankruptcy And You: Tips For Recovery And Rebuilding Credit

by Terrence K. Magee on January 29, 2014

Bankruptcy is a hard decision, it is sometimes necessary. Going through this ordeal is easier when you are armed with lots of solid advice. Read the below article for some helpful tips from those informed about bankruptcy.

If you are in this position, you need to familiarize yourself with regional bankruptcy laws. Each state has its own bankruptcy laws. For example, the personal home is exempt from being touched in some states, but others do not. You should be familiar with the laws for your state before filing.

Don’t use a credit cards to pay off your taxes if you’re going to file bankruptcy. In many areas of the country, this debt won’t be discharged, and you could be left owing a significant amount to the IRS. This means using a credit card is not necessary, since bankruptcy will discharge it.

You have other options available like counseling for credit that consumers can use.Bankruptcy leaves a permanent mark on your credit history, so before you take such a large step, to help try and limit the damage to your credit.

Don’t avoid telling your attorney of any specific details of your case. You should not take for granted that your lawyer will remember every important detail without a reminder. This is your bankruptcy case, so don’t be scared to mention it.

You may still have trouble with getting unsecured credit after filing for bankruptcy. If this is so, consider requesting secured cards. This will prove that you are serious about getting your credit. After a while, you will then be able to acquire credit cards that are unsecured.

The person you file for bankruptcy has to have a complete and bad aspects of your finances.

Before you decide to declare bankruptcy, be sure that other solutions aren’t more appropriate for your case. For example, a consumer credit counseling program may be a better bet if your debts are relatively small. You can also talk to creditors and ask them to lower payments, but be certain to get any arrangements with creditors in writing.

Chapter 7

Be certain that you can differentiate between Chapter 7 and Chapter 13 bankruptcy cases. Chapter 7 involves the best option to erase your debts for good. Your former ties with all creditors will cease to exist. Chapter 13 bankruptcy though will make you work out a five year repayment plan to eliminate all your debts.

The process for bankruptcy can prove particularly brutal. Lots of people think they need to hide from everyone else until it is all done. This is not a good idea because staying alone could cause you to feel depressed. So, it is critical that you keep spending time with the ones you love, you should still be around those you love.

Nobody wants to file bankruptcy, but some people cannot avoid it. You should now have some excellent advice from people who have personally struggled with the bankruptcy process. Taking time to learn from those who have traveled this road before you will make your own journey less stressful.

A number of people would like to learn more about What Is Chapter 13 Bankruptcy, but not everyone knows where they should look. You have found the information you require to get going, right here in this article. Now implement the advice you’ve just read.

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