Posted By admin on February 21, 2014
It can be very hard to live with bankruptcy. If you are saddled with financial hardship, it may seem that you have few alternatives. Although, this situation should not get you down because there are items you can still get like a home loan or car, continue on and learn how.
If you are thinking about paying off your tax obligations with a credit card and then filing bankruptcy, think again. You will find few states that discharge this kind of debt. You may also wind up owing a lot of money to the IRS. Should the tax be dischargeable, the debt is often dischargeable as well. There isn’t any reason to use a credit card to pay the tax bill since the bill can be discharged anyway.
Instead of jumping into a bankruptcy filing, be sure your situation requires it. You can find services like counseling for credit that consumers can use. Bankruptcy is a permanent part of your credit, so before you make such a big decision, you might want to explore all other choices so that your credit history is affected as minimally as possible.
It is essential that you are honest and forthright in the documentation you provide for your bankruptcy filings. You might feel tempted to not declare certain assets in your bankruptcy in order to protect them from forfeiture, but if you’re found out, the process could take longer, or worse, you might be banned from filing for bankruptcy completely.
Check into less drastic solutions prior to declaring bankruptcy. You could find relief from small debts by using a consumer credit counselor. You could even negotiate for lower payments. However, you should ensure that you always obtain a written record of all the changes to your debt that you’ve agreed to.
Think about all the choices available to you when you file for bankruptcy. You can get your interest rates reduced or enter into a debt repayment plan. Before you file bankruptcy, ask your attorney if any of these are viable alternatives for you. Loan modification plans can be helpful for those facing foreclosure. The lender may be willing to reduce interest rates, eliminate late charges or extend the life of the loan. Above all else, what creditors want is to get their money. Sometimes they would rather settle for a repayment plan instead of a debtor who is bankrupt.
Once the initial filing period is over, ensure that you are getting out and enjoying life. The filing process is extremely stressful for a lot of the people who go through it. That stress can lead to depression, if you don’t take the right steps in fighting it. Remember that your situation is going to improve after you file for bankruptcy.
In time you will leave the effects of bankruptcy behind you and resume your normal life. Establishing a record of saving money and paying your debts on time will increase your credit worthiness. Start now, and by the time you need a home loan or car, you may be able to get one.