It isn’t always easy to file for personal bankruptcy. There are different types of bankruptcy, and the type that you choose depends upon your personal finances and the nature of your debts. Research into what will best suit you is important before you consider filing. Check out the tips listed below if you want some solid info on the subject.
Be warned that after your bankruptcy, you may stand out as a leper to credit institutions. You may be unable to get a simple credit card. If you find that to be the situation, consider requesting secured cards. By doing this, you will be letting people know that you want to fix your credit score. Unsecured credit may be offered to you quicker than you think after doing so.
Prior to filing for bankruptcy, be sure you have investigated all of your alternatives. You can also avail yourself of other options, such as consumer credit counseling. Bankruptcy will be on your credit report and affect your credit score for many years to come, so it is a decision that should not be taken lightly. Try to use it as a last resort.
If you are considering using credit cards to pay your taxes and then file for bankruptcy, you may want to rethink that. Most of the time, you cannot discharge this debt. As a result, you will owe the IRS a lot of money. Bear this in mind; if the tax can be discharged, then the debt can be as well. This means using a credit card is not necessary, when it will just be discharged.
Make sure that you understand the difference between Chapter 13 bankruptcy and Chapter 7 bankruptcy. Chapter 7 bankruptcy is intended to wipe out all outstanding debts. All of your financial ties to the people you owe money to will disappear. In a Chapter 13, though, you’ll be put on a payment plan for up to 60 months before being free of your debts. It’s crucial that you know the differences between all of the various kinds of bankruptcies so that you may choose the best option for your situation.
There are often times when you feel that you have very little control over what is happening to you. Apply the advice from this article to help yourself better understand filing for bankruptcy. Use the advice that you have been given to make some changes in your life.
