How To Rebuild Your Credit After Filing Bankruptcy
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Post on 17-Aug-2015
- 1. How To Rebuild Your Credit After Filing Bankruptcy Learning more about the process of bankruptcy is, sadly, something that a lot more people have to do today. The economic downturn has played a large role. Before you choose to file for bankruptcy, it is important that you know the ins and outs of the subject, in order to ensure you make the best decisions. Read this article to learn more about bankruptcy. If you are considering using credit cards to pay your taxes and then file for bankruptcy, you may want to rethink that. Most places will not consider the debt dischargeable, meaning you will have to pay the IRS a lot of money. If the tax can be discharged, so can the debt. Therefore, you should not pull your credit card out for purchases if it is just going to be discharged during the bankruptcy. When you realize that you probably will file for bankruptcy, do not pay your creditors or try to avoid bankruptcy by spending all of your regular or retirement savings. Unless there are no other options, your retirement funds should never be touched. You may need to use some of your savings; however, you should not use all of your savings. Remember that you must safeguard your future financial security. Don't avoid telling your lawyer specific details with your case. Don't assume that he'll remember something from a month ago; tell him again. Speak up, because it is your future on the line. Do some research to find out which assets you could lose by filing for personal bankruptcy. The kinds of assets which may be exempted during bankruptcy proceedings are listed in the Bankruptcy Code. You can determine exactly which of your possessions are at risk by consulting this list before you file. This will ensure that you do not have any surprises once you have filed bankruptcy. There is hope! There may still be way to get repossessed items back after you file for bankruptcy. If your property has been repossessed less than 90 days prior to your bankruptcy filing, there is a good chance you can get it back. Talk to a lawyer for help with the petition filing process. Weigh all of your options before declaring bankruptcy. For example, if you only have a little bit of debt, you might be better off if you went through consumer credit counseling. It may also be possible to get lower payments, but if you do, be sure to obtain records for any consensual debt modifications. The two main kinds of bankruptcy are Chapter 7 and Chapter 13. Make sure you understand them so you know what is best for you. Chapter 7, for example, will wipe away every one of your outstanding debts. Any ties you have concerning creditors will definitely be dissolved. Chapter 13 bankruptcy allows for a five year repayment plan to eliminate all your debts. It is worth while to take your time to research both types of bankruptcy to decide which option works best for you, and your financial situation.
- 2. In conclusion, bankruptcy is common these days, many times because of the way the economy is. By using the information you've read here, you can now make sound decisions about your finances and choose the bankruptcy option that will work best for you.
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