Learn from your mistakes and vow to be more financially responsible after filing for personal bankruptcy. The point of bankruptcy is to have a clean slate and a fresh start. Learn how to make bankruptcy work for you, instead of allowing it to devastate your life.
There are differences between Chapter 13 bankruptcy and Chapter 7; be sure to familiarize yourself with both. Take time to research this online and see the pros and cons for filing each one. Before making any decisions, discuss the information you have learned with your lawyer.
If you are earning enough to cover your bills, don’t file for bankruptcy. The cost to your credit history far outweighs the simplicity of the easy-out bankruptcy. This is a hard pill to swallow for many.
Debt Repayment
Look at all the alternatives to bankruptcy before filing. Talk to a bankruptcy lawyer to see if a debt repayment plan or reduction in interest rates is a viable option for you instead of bankruptcy. Loan modification can help you get out of foreclosure. Lenders can assist you in a lot of ways, by cutting interest rate charges and cutting off late fee charges. They can also lengthen the loan. Creditors want to recoup the most money possible from debtors, and they can often get more through debt repayment plans than bankruptcy procedures.
Speak with your attorney about ways you can keep your car. Chapter seven bankruptcy often provides for the lowering of payments. If you meet the criteria specific to your state, it may be a good option to consider.
Be decisive at the correct moment in time. In bankruptcy filing, timing is quite important. While there are times that it is ideal to file soon, there are other times in which you should wait. Discuss your specific situation with a bankruptcy lawyer to find out when would be your best time to file.
Forget about detrimental terms, such as shame, when you are filing for personal bankruptcy. The bankruptcy process makes people feel guilty and ashamed. Feeling like this will not help your situation and can actually do serious damage to your mental well-being. Remembering to stay positive as you go through financial difficulties is a great way to deal with your bankruptcy filing.
Do some research about bankruptcy laws before filing for bankruptcy. For instance, a filer cannot transfer assets to someone else for at least a year before filing. Other laws you need to know include debt-based regulations. You cannot increase debt via credit cards prior to filing a claim. Your finances basically have to remain frozen.
Don’t just assume bankruptcy is the right option, especially if you have not considered others. Credit counseling may work for you. This does not necessarily have to cost you, as there are some organizations that will assist you for free. They’ll talk to creditors and strive to get both your payments and interest rates lowered. You’ll make your payments to the company, and the company will pay off your creditors.
If you are planning to file bankruptcy, avoid taking large cash advances from credit cards thinking that the debt will be erased. If you were to do this you could be charged criminally with fraud, because the act is intended to rip off the company.
Before filing for bankruptcy, it is important to still be smart with your finances. In other words, you do not want to waste your efforts here by starting to ring up more and more debt. Bankruptcy judges and creditors may examine current and past behavior as they work to resolve your case. Your current spending behavior should show that you are making a real effort to modify your financial habits.
In conclusion, most circumstance that lead to bankruptcy are not positive. That said, filing for bankruptcy can be a positive turning point in your life. If you put the ideas you learned in this article into practice, you can write a whole new financial story and live happily ever after.
This is a limited-time offer. We are not able to guarantee availability if you wait!
