Although unhappy circumstances in your life might have led you to file for bankruptcy, your life post-bankruptcy can be much better. The main point is to start over financially. Don’t look at it as the end of the world; read this article to help you determine how your life will be enhanced by bankruptcy.
Learn as much as you can about bankruptcy by going to informational websites. The United States Department of Justice and National Association for Consumer Bankruptcy Attorneys provide excellent information. The more you know about it, the better you are able to make the best decision for your situation and to make sure that the bankruptcy proceedings move forward with minimal setbacks.
If you are considering using credit cards to pay your taxes and then file for bankruptcy, you may want to rethink that. In most states, this is not dischargeable debt. Therefore, you will end up owing the IRS a lot of money. Transferring the debt to another medium (e.g. a credit card) won’t magically make a tax debt discharagable, either. It is pointless to use credit cards if they can be discharged.
It can be difficult to obtain unsecured credit once you have filed for bankruptcy. Secured cards can be a great way to get started if this happens to you. This will demonstrate that you’re seriously trying to restore your credit. If you pay your secured card off on time, you’ll eventually find that companies will start offering you unsecured credit.
Never pay for a consult with a bankruptcy lawyer, and ask plenty of questions. Most lawyers provide a consultation for free, so consult with many of them before picking which one you want to hire. Only make a decision after you have met with several attorneys and all of your concerns and questions have been addressed. You can think about your decision before making a commitment. This will give you extra time to interview several attorneys.
Make sure you know how to differentiate between Chapter 13 and Chapter 7. Weigh all the information you can find on- and off-line to make an educated decision. Do not hesitate to have your lawyer explain any details that seem difficult to grasp. This will help ensure you make the right choice when filing.
It is imperative that you know for sure that bankruptcy is the option you need. It may be that all you really need to do is consolidate some of your debts. The whole process of filing for bankruptcy can be a long, and hard one. It will have a long-lasting effect of your future credit opportunities. Before you decide to file for bankruptcy you want to be absolutely certain that it is the only way to resolve your problems.
Spend time with loved ones. The whole process of filing for bankruptcy is hard. It takes a long time, it can be stressful, and people feel unworthy, guilty and ashamed. Many people don’t feel like socializing during the ordeal. However, becoming a hermit will only increase feelings of self-doubt and could make you depressed. This is the reason that you need to take the time out to spend time with everyone you love despite what your financial situation is.
If you are about to file for bankruptcy, you have probably been through tough times lately. However, the story that gets written after bankruptcy does not have to be depressing too. Try using the tips in this article so you can make bankruptcy into the most positive experience possible.