It can be hard to live with bankruptcy. When you are dealing with financial stress, you come to the realization there aren’t many options. However, even if you have a poor credit score, you can still live your life and get some of the things you are looking for, like a car or a home.
Never lie about anything in your bankruptcy petition. Lying on your filing can cause dire consequences such as: delays, penalties, being prevented from re-filing, or even jail time.
It is important to remind your lawyer of any details that may be important to your case. It is wrong to assume that your lawyer will remember every word you ever utter! Speak up, because it is your future on the line.
If you are planning to file for bankruptcy, be sure to learn what types of assets you will be able to keep and which can be seized. The Bankruptcy Code has lists of various asset types that are exempt during the process. You need to read the exemptions for your state, so you know what property you can protect. If you aren’t aware of this, you could lose some assets that you value.
Do not despair, as it’s not the end of the world. Filing for bankruptcy may allow you to get back property, such as an auto, jewelry, or electronics, that you may have had repossessed. Any property repossessed within 90 days before filing bankruptcy, may be able to be returned to you. Speak with a lawyer that will provide you with guidance for the entire thing.
Before you decide to declare bankruptcy, make sure that a less-drastic solution isn’t more appropriate. For example, consumer credit counseling services can often help you figure out a workable repayment plan with creditors. Some creditors will work with you to help you pay off your debt with lower interest rates, lower late fees, or an extended loan period.
Chapter 7
Be sure you know how Chapter 7 and Chapter 13 differ. Chapter 7 bankruptcy is intended to wipe out all outstanding debts. Your former ties with creditors will cease to exist. If you choose to file for Chapter 12 bankruptcy, you’ll be put into a 60-month plan for repaying your debts before they’re eliminated. It’s imperative that you know the differences among the various categories of bankruptcy so that you are able to choose the wisest one for you.
It’s a good idea to meet with a number of bankruptcy lawyers before settling upon one. The majority of them offer free initial consultations. Make sure that you meet with an actual lawyer and not an assistant or paralegal, as these people are not allowed to provide legal advice. Searching for the best lawyer will help you located the comfort you need during this time.
After you have filed for bankruptcy, enjoy your life. It can be several months between the initial filing and the final discharge of debts. Depression can ensue from the stress if action isn’t taken. Life will get better after you finally get this situation over with.
Exhaust all other option prior to filing personal bankruptcy. You should consider credit counseling. There are even non-profit companies that may be able to help you. These companies lower your interest and payments by working with your creditors. They collect payments from your and then pay the creditors.
Avoid large cash advances from credit cards when considering bankruptcy. You may think these debts will just be washed clean, but you are wrong. That is considered fraudulent behavior, and you can still have to pay the credit card back, bankruptcy or no.
Bankruptcy is not a financial death sentence. By becoming more of a financially responsible individual, creditors will get the picture that you’re trying to dig yourself out of a hole. All you need to do really is start saving your money and rebuild your credit so that you have a chance to get that next loan.
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