Before you file for bankruptcy, make sure you have considered all your options. If you are contemplating filing for bankruptcy, it means that you are in a dire financial situation. So do not think that bankruptcy will solve all of your problems, use this guide in order to fix your financial situation if possible.
If you are considering using credit cards to pay your taxes and then file for bankruptcy, you may want to rethink that. Credit card debt is handled charge by charge during bankruptcy, and in most states, tax debt cannot be discharged through bankruptcy. The main thing to remember is that dischargeable taxes are the equivalent of dischargeable debts. So as you can see, in this situation there is no need to use the card when the debt will be discharged when you file for bankruptcy.
After you have declared bankruptcy, you may have a hard time being approved for unsecured credit. If that is the case, you should try applying for one, or two secured cards. This at least shows you are making an honest attempt at reestablishing your credit worthiness. Then, in time, it may be possible for you to obtain an unsecured credit card.
Find a bankruptcy attorney who offers free consultations, and ask lots of questions. Seek free consultations from a handful of lawyers, before deciding which one to hire. Only make your decision if all your questions and concerns are adequately addressed. Take your time choosing the right attorney to assist in your bankruptcy. So, this gives you plenty of time to consult with several attorneys.
Getting unsecured credit post-bankruptcy will likely be difficult. In this event, you should attempt to apply for a secured card or two. When you do this, it shows your determination to fix your credit history. Once creditors see that you are making an effort to restore your credit, they may allow you to get an unsecured card in the future.
Avoid filing for bankruptcy if you make more money than your monthly bills. Although bankruptcy might seem to be an easy way of being able to pay for your debts, you must remember that it is something that will remain roughly about 7 to 10 years in your credit report.
As you can see from the above article, bankruptcy doesn’t just happen. Many steps must be taken, and they must be completed properly. By using the tips in this article, you will be able to successfully file for bankruptcy and begin to rebuild your life.
