There is hope for a better life after bankruptcy, no matter the unpleasantness that went before. The point of bankruptcy is to have a clean slate and a fresh start. Read on for how to make the bankruptcy process be a rebirth instead of financial Armageddon.
Do not pay your taxes with credit cards that will be canceled when you file for bankruptcy. In a lot of places, the debt cannot be discharged, and you may still owe money to the IRS. Should the tax be dischargeable, the debt is often dischargeable as well. It is pointless to use credit cards if they can be discharged.
Don’t pay tax requirements with your credit cards with the thought of starting the bankruptcy process afterward, without doing your research first. Most of the time, you won’t be able to discharge this debt, and you could make things worse with the IRS. If the tax can be discharged, so can the debt. Therefore, you have no reason for use of a credit card, if the amount is to be discharged in due process of the bankruptcy.
Getting unsecured credit post-bankruptcy will likely be difficult. If you do, then try applying for a coupe of secured cards. Using a secured card not only helps to rebuild your credit, but it also keeps you from going more in debt with credit card bills. After using a secured card for a certain amount of time, you might be offered an unsecured card once again.
Do not abandon hope. If you’ve had collateral, such as a car, electronics, or jewelry repossessed for non-payment, you might be able to recover the property when you file for bankruptcy. If you have property repossessed less than ninety days prior to filing your bankruptcy, you may be able to get it back. Talk with an attorney who can guide you through the process of filing a petition.
As you’ve read, you can file bankruptcy several ways. You may become overwhelmed with the process. If that begins to happen, always refer back to these tips. Take some time to think about the tips you have read here and how they apply to your situation. Afterwards you will be sure to make a good decision.