Bankruptcy And Your Credit: The Impacts Of Filing

Whatever led you to declare bankruptcy is probably very sad, but that doesn’t mean that you can’t have a better life after bankruptcy. The bankruptcy laws allow you to have a second chance at building your credit and meeting all your financial responsibilities. Learn how to make bankruptcy work for you, instead of allowing it to devastate your life.

Individuals often seek to file for personal bankruptcy protection if their debts exceed their ability to repay them. If this is your case, you should do some research about bankruptcy laws in your state. Every state is different when it comes to dealing with bankruptcy. In a few states, they see to it that your house is protected. This is not the case when it comes to other states. See to it that you understand the bankruptcy laws in the area that you live prior to filing.

Do not use a credit card to manage your tax issues and then try to file bankruptcy. Generally speaking, taxes are not a dischargeable debt. The delays caused by this sort of tactic could leave you owing the IRS a great deal in interest and penalties. 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.

Hire a lawyer if you plan on filing for bankruptcy. Having a lawyer on your side is the best way to avoid mistakes and bad decisions. An attorney will make sure that everything is being done correctly.

Be aware that getting unsecured credit is going to be tough once you’ve gone through bankruptcy. Look into getting a secured credit card in order to get back on your feet with building credit. This will allow you to start building a good credit history while minimizing the bank’s risk. After a time, you are going to be able to have unsecured credit cards too.

This article has, hopefully, taught you that bankruptcy does not mean life is over. Going through bankruptcy will be hard at first, but it can also be worth it. By using the advice that has been given to you, you can find a way to clear up your personal debt.