Upload
elitebliss499
View
7
Download
0
Embed Size (px)
Citation preview
What You Need To Know About Personal Bankruptcy
It can be hard to live with bankruptcy. If you are thousands of dollars in debt, you may not havemany options. Filing for bankruptcy doesn't mean you are permanently barred for owning things thatrequire large loans, such as an automobile or a house. Read these tips to find out more.
Don't pay tax requirements with your credit cardswith the thought of starting the bankruptcy processafterward, without doing your research first. In manyparts of the country, you cannot get this debtdischarged, and in the end you will be left owing theIRS a big sum of money. Keep in mind that if the taxdebt is eligible to be discharged, then the credit carddebt is also dischargeable. Just because your creditcard could be discharged in bankruptcy does notmean you should use it.
Consider all options before deciding to file forpersonal bankruptcy. There are plenty of otheroptions open to you, like consumer credit counseling.Bankruptcy leaves a permanent mark on your credithistory, so before you take such a large step, youwant to exhaust all other options so that the futureeffects on your credit history are as minimal aspossible.
You may still have trouble receiving any unsecuredcredit after a bankruptcy. Since it is important thatyou work to rebuild your credit, you should insteadthink about applying for a secured card. When you dothis, it shows your determination to fix your credithistory. After a while, you may be able to getunsecured credit again.
Use a personally recommended bankruptcy attorneyinstead of one found through the Internet or phonebooks. Don't allow yourself to be taken advantage of
by predatory lawyers just because you are filing for bankruptcy. It is important to find someonetrustworthy.
A lot of bankruptcy attorneys will let you have aconsultation, so try several out. Talk to thelawyer and not his assistant, who may not belegally able to help you. Take some time to talkto different lawyers to find one that fits yourneeds, and meshes well with you.
It is possible to keep your home. You don't haveto lose your home just because you are filing forbankruptcy. If your home value has gone down,or if there's a second mortgage, you might beable to keep it. You may also want to check out
the homestead exemption because it may allow you to keep your home.
Before ultimately deciding whether or not to file for bankruptcy, be sure to weigh the differentoptions available to you. There are many other options including debt consolidation and makingpayment plans with your creditors. If foreclosure looms, think about getting your loan plan modified.There are many ways in which a lender can make adjustments that will be helpful to you. Amongthem are extending the loan, forgiving late charges and reducing the interest rate. When all is saidand done the creditors just want their money, and more often than not will work with you on arepayment plan.
Even when filing for bankruptcy you should now be aware that this should not put a damper on yourlife. Through the saving of money and striving to reestablish your credit, creditors will take this toheart. Begin saving today, and you'll surely notice the difference in others' perception of you whenyou apply for an important loan such as a home or car loan.