Stress, anxiety and depression are emotions many people feel when they are faced with bankruptcy. These feelings can make it hard to make it through the day, and can leave people feeling stuck. As you can see, filing for bankruptcy does not mean life is over.
One of the most important things to remember when filing for bankruptcy is to be honest and truthful every step of the way. As long as you are not hiding income or assets from the courts, you can ensure that there are no difficulties with your petition. This will save you from having your petition dismissed and your debts dropped from re-filing.
Before you decide to file bankruptcy proceedings, determine which assets will be safe. Certain assets, as listed in the local bankruptcy regulations, are immune from seizure during bankruptcy. Many belongings may become eligible for repossession or seizure after filing for bankruptcy. If you don’t heed that advice, you might find yourself getting surprised when your favorite things are repossessed.
Be honest when filing for bankruptcy. Don’t hide liabilities or assets, as they’ll come back and haunt you. It is necessary to be open regarding both the positive and negative aspects of your financial life. Lay everything out on the table so that you and your lawyer can devise a plan to get you out of this mess.
You should not have to pay for a consultation with a bankruptcy attorney. Make sure you ask lots of questions. Free consultations are standard practice among bankruptcy lawyers, so interview multiple candidates before making a final decision. Make a choice only if you have received good answers to all the questions and concerns you brought to the table. You don’t need to decide what to do right away. Be sure to talk with a number of lawyers, and compare the information you receive.
Before you file for personal bankruptcy, be sure that you are cognizant of all current laws. Bankruptcy laws are always changing, and you need to be aware of any changes so your bankruptcy can be properly filed. To learn about any changes, search the Internet or contact your state’s legislative office.
There are two different kinds of personal bankruptcy you can file for: Chapter 7 and Chapter 13. Research them online to see the positive and negative aspects of each one. If anything you see is unclear or doesn’t make sense, go over it again with your attorney before making the final filing decision.
Don’t file bankruptcy if you can afford to pay your debts. Bankruptcy may seem to be the easy way out, but your credit report will show the scar for the next ten years.
If you filed for Chapter 13 bankruptcy, you can still get a mortgage or a car loan. However, it will be a longer and more arduous task. You need to contact your trustee so you can get approved for a new loan. You need to develop a budget and show that you will be able to afford the new payment. Also, be sure you can provide an explanation as to why this purchase is necessary.
Don’t let shame consume you during the bankruptcy process. It is not uncommon for bankruptcies to elicit feelings of guilt, remorse and embarrassment. These feelings do not help you and provide no value. Try to keep a positive attitude during this tough time and you will be able to better cope with bankruptcy.
Don’t drag your feet figuring out if bankruptcy is the right thing to do. Although it may be tough to admit you are in financial trouble, the more you wait the higher the debt becomes. When you speak with a professional quickly, you will get valuable advice that will help to prevent your situation from spinning out of control.
Several months after discharge, get copies of credit reports from the big credit reporting agencies. Scrutinize the information, and make sure all debts that should be discharged are and that all of your previous credit accounts are closed. Resolve any problems immediately so you can build up your credit score as quickly as possible.
Always document all the debts you want to be eliminated. If you fail to list a debt, it may not make it into your discharge. It is imperative that you take responsibility to let the court know about all debts by the deadline they give you.
Chapter 7
If you are unable to get a homestead exemption when filing for Chapter 7, you might consider filing for Chapter 13 bankruptcy to cover your mortgage. Some scenarios will require a conversion from Chapter 7 to Chapter 13, dependent on what your attorney says.
If you find yourself getting depressed over filing for bankruptcy it is a good idea to talk to others in the same situation. It’s quite common for you to feel alienated and unable to connect with your friends while you’re dealing with the stress of a bankruptcy. By contrast, the Internet is a great place to vent and ask for support from others who have been through the bankruptcy gauntlet and come out the other side.
After reading, you can see you do have options available, and bankruptcy does not signal the end of the world. It can be daunting, but you can do it. If you use these tips and ideas, you will be on your way to a better financial future.
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