Top Tips For Anyone Thinking About Bankruptcy

Posted on Jun 23, 2012 in Personal Finance | 0 comments

Although it may be difficult to get financing after filing for bankruptcy, it will not be impossible by any means. Although there may be some truth to this, it should still be better than your credit situation was before you filed for bankruptcy. Going forward, make sure to pay all bills on time for a positive credit history.

Act when the time is right. Timing is everything, especially in personal bankruptcy filings. Sometimes, it is good to file immediately, but sometimes it is smarter to wait until you have passed through the worst of things. Talk with a bankruptcy attorney to find out the ideal timing for filing based on your particular situation.

Remember that your Chapter 7 filing may affect other people in your life as well. When filing Chapter 7, you are not legally responsible for the debts in your name. However, the creditors could come after your co-signer and demand full payment for the debt.

Remember to have fun with your life when you?re done with the filing process initially. It can be several months between the initial filing and the final discharge of debts. It is essential to cope with this stress well, to prevent becoming depressed. You must realize that things will get better over time.

Filing for bankruptcy will probably not help you in the event of exorbitant taxes. Some people pay off tax debt using a credit card, then declare bankruptcy soon afterward. This is done on the mistaken belief that since the amount owing is now owed to a credit card, they will get away with not paying taxes. Remember that even if you use a credit card to pay for your taxes while you file for bankruptcy, you are still going to owe the amount due.

Make sure that you are as honest as you can be when you file for bankruptcy. If you fail to disclose pertinent information in your filing, your case might be dismissed right away. Disclose any income or assets that are crucial to the proceedings. Doing so helps you demonstrate good faith and facilitates an appropriate outcome.

Consider Chapter 13 bankruptcy for your filing. In most states, Chapter 13 bankruptcy law stipulates that you must have under $250,000 of unsecured debt and a steady income. That kind of bankruptcy allows you to hold on to your personal things and real estate while repaying your debts with a plan to consolidate your debt. This plan normally lasts from three to five years, in which you?ll be discharged from unsecured debt. Consider that if you even miss one payment, your case will not be considered by the court.

Two to three months following your bankruptcy hearing, get a copy of your credit score from the major reporting agencies. Make sure that the report accurately represents your discharged debts and closed credit accounts. Contact the credit reporting agencies if there is a discrepancy in order to rebuild your credit.

Be certain you understand all you can about bankruptcy by researching reputable sites that offer good information. Many sites, including the U.S. Department of Justice and American Bankruptcy Institute are two such places to look. The more information you have, the more confident you can be about any decision you make and you will know that you are doing the best thing possible for your situation.

Know the rules of personal bankruptcy prior to petitioning. There are many laws which govern bankruptcy; therefore, to protect your bankruptcy case, know the rules. Not only could your case be dismissed, but it may also affect your ability to refile. Thoroughly research bankruptcy before you make the decision to file. This will make things a lot more simple in the long term.

Proper planning is the best place to start. It?s best to take as much time as possible. It is important that you are moving in the right direction away from bankruptcy filing. At this point, you can begin making plans and preparing yourself for your future.

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