It’s difficult for anyone to file bankruptcy, but sometimes it can be the only option. When going through this process it is best you have a lot of knowledge on what is about to take place. Keep reading for tips and advice from those with personal bankruptcy experience.
One of the most important things to remember when filing for bankruptcy is to be honest and truthful every step of the way. You might feel tempted to not declare certain assets in your bankruptcy in order to protect them from forfeiture, but if you’re found out, the process could take longer, or worse, you might be banned from filing for bankruptcy completely.
Make sure you keep reminding your attorney about any important details in your case. Just because you have told him something of importance that he will remember it. Don’t be afraid to speak up, as it is your case and your future will be affected by its outcome.
Once the bankruptcy is complete, you may find it difficult to receive unsecured credit. Look into getting a secured credit card in order to get back on your feet with building credit. They offer you the chance to demonstrate the seriousness with which you now take your financial obligations. After a certain time, you will then be able to acquire credit cards that are unsecured.
Be as honest as you possibly can when filing for bankruptcy; hiding liabilities or assets will only hurt you in the long run. The professional that helps you file for bankruptcy has to have a complete and accurate picture of your financial condition. Do not leave anything out and come up with smart plan to manage the situation you are dealing with.
Do not abandon hope. Filing a bankruptcy petition might facilitate the return of your property, including cards, electronics or other items that may have been repossessed. You may be able to recover repossessed property if the repossession occurred fewer than 90 days ago. A qualified bankruptcy attorney can walk you through the petition process.
Bankruptcy Filing
If you are making more money than you owe, bankruptcy should not even be an option. Remember that the record of your personal bankruptcy filing will be discernible on the report of your credit for as many as 10 years. For this reason, bankruptcy filing should not be taken lightly.
Remember to have fun with your life when you’re done with the filing process initially. Many people feel a lot of stress while they work through the bankruptcy process. That stress could lead to complete depression, if you do not take the necessary steps to fight it. Life will get better after you finally get this situation over with.
If your vehicle is in question, perhaps your attorney can assist in lowering your payments. It is possible to get your car payment lowered if you file using Chapter 7. Here are the qualifications in regards to your vehicle: you must have bought it nine hundred and ten days or more before filing for personal bankruptcy; your loan must carry high interest; your work history must be steady and solid.
Take into consideration all the ramifications of a Chapter 7 bankruptcy. Filing for this can impact any co-debtors, such as friends or family. When filing Chapter 7, you are not legally responsible for the debts in your name. Your creditors can then come after your co-debtor for full repayment of the debt.
During a Chapter 13 bankruptcy, you may still be able to get a mortgage or car loan. However, it will be a longer and more arduous task. You will be required to meet a trustee and be approved for a new loan. Draw a budget up and show how you can pay the newer loan payment. Be ready to justify the purchase that you need the loan for, too.
It is in your best interest to be abreast of your rights in petitions for bankruptcy. There are bill collectors who will claim that you cannot add your debts to your bankruptcy case. There are only three main classes of debts that are non-dischargable: taxes, child support and student loans. If you are told differently by a collector, research the information yourself. If you find they are in error, get the name of their company, phone number and any identifying info so you can report it to the attorney general in your area.
Pick the right time to file. When it comes to filing for personal bankruptcy, timing is everything. Sometimes you should file immediately; however, there are times when it is better to delay until the worst has passed. Speak with a bankruptcy lawyer about when the best time is to file for your specific needs.
Refrain from feeling shameful about your bankruptcy. It is possible for those going through the bankruptcy process to feel unworthy, guilty or ashamed. Wallowing in these emotions benefits no one, and only serve to harm your own mental health. Keep your mindset positive while you work through financial troubles such as bankruptcy to reduce stress and have an easier time coping.
While no one wants to go through bankruptcy, at times it cannot be avoided. Having read the preceding piece, you now possess critical insight and knowledge offered by those with actual prior bankruptcy experience. You can take comfort in the fact that others have been in this situation before you, so take heed from their experiences to help you deal with your own.
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