If you are thinking about filing for bankruptcy, research all your options before making an informed decision. Digest the information contained herein, so that you are aware of what you can expect and you know what actions to take prior to making that critical decision. Become as educated as possible.
Always be honest with the information you give about your finances. It is vital that you disclose all information about your assets and income so there are no delays or penalties, such as a court barring you from filing again later in the future.
It is important to remind your lawyer of any details that may be important to your case. Do not assume that if you’ve already told him or her something important once, that they will remember it later without a reminder. This is your future in their hands, so don’t be scared to mention it.
Credit Cards
It’s not uncommon to learn soon after bankruptcy that you are unable to get an unsecured credit card easily. If this happens to you, think about applying for a couple of secured credit cards. This at least shows you are making an honest attempt at reestablishing your credit worthiness. After a certain time, you will then be able to acquire credit cards that are unsecured.
Use a personally recommended bankruptcy attorney instead of one found through the Internet or phone books. There are a number of companies who may take advantage of your situation, so always work with someone that is trustworthy.
Ask for a free consultation with your bankruptcy attorney and ask questions about experience and education. You can meet with a few lawyers before deciding on one. Most lawyers provide a free initial consultation. The lawyer who properly answers your questions is the one you should hire. It is not necessary to decide immediately after your consultation. That gives you the chance to speak to a number of lawyers.
If you are seriously thinking of filing bankruptcy, make sure that you contact an attorney. Having a lawyer on your side is the best way to avoid mistakes and bad decisions. An attorney will make sure that everything is being done correctly.
Think carefully about your different options before filing for bankruptcy. For example, consumer credit counseling programs can help if your debt isn’t too large. You can also talk to creditors and ask them to lower payments, but be sure to get any debt agreements in writing.
Chapter 7
You need to educate yourself on the differences between Chapter 7 and Chapter 13. The Chapter 7 variety can help you eliminate your debts almost entirely. This type of bankruptcy ends any relationship you might have with creditors. 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. You need to be aware of the pros and cons of each type of bankruptcy so you can correctly select the best choice for your situation.
Learn the differences between Chapter 7 bankruptcy and Chapter 13 bankruptcy. There is a wealth of information online about each type of bankruptcy and their respective pluses and minuses. If you have trouble understanding the wealth of information, talk to your lawyer so he or she can help you make an informed choice.
Remember to have fun with your life when you’re done with the filing process initially. It is common for people to stress when filing. This kind of stress can take a heavy toll on your personal life, especially if you are not making any efforts to adopt a positive attitude. While the process is tough, you are getting a chance to start over.
If concerned about keeping possessions like a car, find out if your attorney can reduce the payment. Filing under Chapter 7 is usually a good way to lower your payments. Your car must have been purchased more than 910 days prior to filing, be a high interest loan, and you must have had a steady work history for this to work.
Avoid using bankruptcy as a last resort. Lots of people turn the other shoulder towards their financial woes and hope that they’ll disappear eventually. However, you should never do this. Your debt can quickly get way too large, and as a result, you may discover that you must foreclose your home or garnish some of your wages. Once you’ve decided that you can’t manage your large amount of debt, it’s time to contact a qualified attorney.
Do a little bit of research into the regulations having to do with filing for bankruptcy before you begin the process. The bankruptcy laws are complex, and things could go badly if even one thing is out of place. You might find that your case become dismissed because of a mistake. Take time to research things related to personal bankruptcy before you move forward. This will make the process go as smoothly as possible.
Under no circumstances should you take out a huge cash advance on any of your open credit cards before filing for bankruptcy. This could be considered as fraud, and you may even be forced in paying all of it back to credit card companies.
Most people that file for bankruptcy try not to use credit cards again. That is not a great idea, because using credit builds better credit. If you don’t use credit at all, you will be unable to re-establish good credit necessary for cars, homes and other future purchases. You can rebuild your credit slowly, beginning with just one credit card.
As you can probably see, filing bankruptcy does not happen quickly or easily. Many steps must be taken, and they must be completed properly. If you apply the tips above, it is possible to be certain that your case is handled cleanly and thoroughly.
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