Tips On Fixing Your Finances After Bankruptcy

Jun 12th, 2013 | By | Category: Info

If you have had any of your possessions repossessed by the IRS, personal bankruptcy may be an option for you. Filing for bankruptcy will ruin your credit score, but it might be the only way of getting out of debt. This article will help you learn many things about bankruptcy.

cantkeepupPersonal Bankruptcy

Be sure everything is clear to you about personal bankruptcy.  Do you understand everything on the websites you’re looking at? The United States Department of Justice, American Bankruptcy Institute, along with many other websites can provide you with the information you need. By having more knowledge, you can make the right decision, as well as be sure you are ensuring that your personal bankruptcy case goes smoothly.

Don’t use credit cards to pay your taxes if you’re going to file bankruptcy (really, dont do this!) In a lot of places, the debt cannot be discharged, and you may still owe money to the IRS. Generally speaking, debt incurred to pay taxes and the tax bills themselves are treated the same in a bankruptcy.

Always be honest and forthright when it comes to your bankruptcy petition. Do not try to shield some assets or income from your creditors. This can get you in serious trouble and prevent your bankruptcy petition altogether.

Make sure you keep reminding your attorney about any important details in your case. It is wrong to assume that your lawyer will remember every word you ever utter! Don’t be afraid to speak up, as it is your case and your future will be affected by its outcome.

Prized Possessions

After filing for bankruptcy, you could have trouble acquiring unsecured credit. Secured cards can be a great way to get started if this happens to you. By doing this, you will be letting people know that you want to fix your credit score. Eventually, you could be able to obtain unsecured credit.

Find out what you exemptions are prior to filing bankruptcy. There is an itemized list detailing assets exempt from bankruptcy, you just need to find the Bankruptcy Code. It’s crucial to read that list before filing to see which of your prized possessions can be seized.

Stay positive.  This will be over soon. You may be able to regain property like electronics, jewelry, or a car if they’ve been repossessed by filing for bankruptcy.

If you are meeting with a lawyer to discuss bankruptcy, the initial consultation should be free so ask every question you have. Most attorneys offer free consultations, so meet with a number of them before you retain one. Only make your decision if all your questions and concerns are adequately addressed. You don’t need to decide what to do right away. So, this gives you plenty of time to consult with several attorneys.

A lot of bankruptcy attorneys will let you have a consultation, so try several out. Talk to the lawyer and not his assistant, who may not be legally able to help you. By meeting with several attorneys through a free consultation you will be able to choose which attorney you feel more comfortable with.

It is imperative that you know for sure that bankruptcy is the option you need. Some people have great luck with handling debt with debt consolidation, which means taking out only one loan to pay off many loans. A bankruptcy filing takes a great deal of time, and it can be extremely stressful. You will have trouble getting credit down the line. Therefore, you need to be sure that you really have no other option than to file for bankruptcy.


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