Deciding to file a bankruptcy petition is quite significant and should be done carefully and deliberately. Read the suggestions below to learn what you should expect, and the steps you will need to take as you think through this decision. Learn as much as you can beforehand.
Do not be afraid to remind your attorney of important specifics of your case. Don’t assume that he’ll remember something from a month ago; tell him again. All information submitted to the court with your signature needs to be double checked.
After a bankruptcy, you may still see problems getting any kind of unsecured credit. If this happens to you, think about applying for a couple of secured credit cards. This will demonstrate that you’re seriously trying to restore your credit. After using a secured card for a certain amount of time, you might be offered an unsecured card once again.
Be sure you know what the difference between Chapter 13 and Chapter 7 bankruptcy is. Get a good grasp of the pluses and minuses each type of filing involves by researching both of them extensively. If you do not understand what you are reading, talk to your attorney before making that serious decision.
Chapter 13
Find out if you can use Chapter 13 bankruptcy, as it may help you better than the other laws. If your total debt is under $250,000 and you have consistent income, Chapter 13 will be available to you. By filing this way, you can hold onto your home and property, while repaying debts through debt consolidation. These kinds of plans usually range across 3, 4 and 5 years. Once this is done, all your unsecured debt will get discharged. Bear in mind that if you miss a single payment that is due under your plan, the entire case will be dismissed by the Court.
Find out about lowering the cost of the payment you pay monthly on your car, if you are afraid of losing it. A lot of the time you can lower payments by filing for Chapter 7 bankruptcy. The vehicle must have been obtained more than 90 days before filing and be a loan with high interest. You must also have consistent work history.
A great tip to remember if you have filed for Chapter 13 is that you will still be able to receive a loan, so you shouldn’t refrain from trying. There are extra hoops to jump through. You need to speak with your trustee so that you can be approved for a new loan. Present a planned budget that shows how you can take on the loan payment and stay current. It will also be necessary to show why a new purchase needs to be made.
Decide right up front that you are not going to feel embarrassed or ashamed about needing to file bankruptcy. You may need to get credit counseling or simply learn how to balance your budget. Wallowing in these emotions benefits no one, and only serve to harm your own mental health. If you want to cope with your bankruptcy filing successfully, you must maintain a positive point of view.
Bankruptcy can be overwhelming to most people, and can be quite stressful. In order to keep things together and protect yourself from excess stress, be sure to hire a competent attorney. Don’t allow cost to determine who you hire. Think about quality rather than cost when hiring an attorney. Do not choose an attorney until you have interviewed them, checked with the better business bureau and checked their standing with the bar association. Try to get a referral from a trusted friend or family member.
As you can see from the above article, bankruptcy doesn’t just happen. Filing for bankruptcy is a very involved and precise process. By following the suggestions above, you can make sure that you have addressed all of the important items that you need to take care of during your bankruptcy.
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