Terry’s Blog: Filing for Personal Bankruptcy

20121102_100341Personal bankruptcy is always an option for those who have had possessions, such as vehicles, repossessed by the Internal Revenue Service. Filing for personal bankruptcy may be the only option available to you; even though, it can be very hard on your credit rating. The advice below will provide you with all the information you need to understand the results of choosing to file for bankruptcy.

If you need to file for bankruptcy, you need to list all of your creditors. Do not leave any of them off or you could be liable for the remainder of balances for creditors which are not reported. Take the time to get a credit report so you can compile a complete list of all creditors before you file. You could end up in debt after you file if you do not.

Stay positive. It can be really hard to stay positive when you are filing for bankruptcy, but a positive outlook can make everything seem to run more smoothly. Being angry and upset will not change the reality of the situation, so try to make the most of things. You will, at least, be able to feel better.

If you have late payments on credit accounts or accounts that have been sent to collections, you are probably already aware of how insistent creditors can be. After you have filed for bankruptcy, you no longer need to endure the threatening and continuous phone calls from creditors and collection agencies. All you must do is refer them to your attorney who will confirm the bankruptcy for them. After this, it is illegal for creditors to harass you in any way.

If you are trying to rebuild credit after filing for bankruptcy, you should apply for secured credit cards. These can help you establish credit, but you have to make sure that they are one of the companies that report to the major credit bureaus, since all of them do not.

Take steps to ensure your home is protected. Losing your home is thought of as common in bankruptcy cases, but it is by no means inevitable. Whether you get to keep your home depends on a few things, including its value and whether you have debts like a second mortgage or HELOC. Otherwise, look into the homestead exemption which may allow you to stay in your home if you meet financial threshold requirements.

If you are sure that you are going to file for bankruptcy, you should stop making any payments towards debts, that will be discharged during the bankruptcy process. Since you will not be liable for these debts in the near future, it is of little benefit to you to keep making payments towards them. It would be more beneficial for you to save any spare cash, that you have for future needs.

Before you file for bankruptcy, make sure that you hire the services of an experienced local bankruptcy attorney. Hiring a bankruptcy attorney who’s located geographically close to you will mean that you can contact him or her with ease. You will then be able to meet up with your attorney in person, in order to discuss your petition in greater detail.

Fight the temptation to rack up large credit card balances just before filing. The creditor will take a look at your account history. If they determine that you charged a lot before applying for bankruptcy, they can file a request with the court to hold you responsible for the amount that you charged.

As stated previously in this guide, personal bankruptcy can always be an option. Given that fact, it should be your last resort due to the consequences involved. A person who becomes well informed in regard to personal bankruptcy will avoid a great deal of stress and will be better prepared to defend valuable belongings from seizure.     Hot weather this week, almost as hot as the housing market.

 

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