Anything that leads you to declaring or filing for bankruptcy is probably not a happy story, but that does not mean that your life after bankruptcy cannot be better. Bankruptcy exists in order to provide you with a fresh start. By following the tips presented here, you can transform your life through personal bankruptcy.
Try to make certain you are making the right choice prior to filing your petition. You can find services like counseling for credit that consumers can use. Bankruptcy will be on your credit report and affect your credit score for many years to come, so it is a decision that should not be taken lightly. Try to use it as a last resort.
You might experience trouble with getting unsecured credit after filing for bankruptcy. If you find that to be the situation, consider requesting secured cards. They offer you the chance to demonstrate the seriousness with which you now take your financial obligations. It will take time, but when creditors see a pattern that satisfies their need to see your good faith with payments, you will then be able to apply for unsecured cards.
Try to find a bankruptcy attorney who is personally recommended, rather than off the Internet, or out of the yellow pages. Although you may find a good lawyer through an advertisement, you can simply find a much better lawyer if the lawyer is recommended to you by someone who has gone through the process and who has the inside track on the lawyer’s true capabilities.
Don’t hide assets or liabilities when filing for bankruptcy. Good or bad, you must tell your bankruptcy attorney everything about your financial situation. Don’t hold back information and create a strategy so you can deal with what’s really happening.
Personal Bankruptcy
If you are considering filing for bankruptcy you definitely need to hire an attorney. Personal bankruptcy is quite complex, and it is entirely possible that you will not be able to familiarize yourself with all the laws and processes. A personal bankruptcy lawyer will be able to help you and ensure you are doing things the proper way.
Weigh all of your options before declaring bankruptcy. For example, there are credit counseling services that can help you to deal with smaller amounts of debt. You can also talk to creditors and ask them to lower payments, but be sure to get any debt agreements in writing.
Chapter 7
Be sure you know how Chapter 7 and Chapter 13 differ. Chapter 7 eliminates all debts. All happenings with creditors will disappear. Chapter 13, on the other hand, involves a five year payment period before any remaining debts are cancelled. You need to determine which type of bankruptcy is right for you given your unique financial situation.
Put forth the effort to grasp the distinctions between Chapter 7 and Chapter 13 bankruptcies. Take the time to find out about each one online, and look at the advantages and disadvantages of each. Do not hesitate to have your lawyer explain any details that seem difficult to grasp. This will help ensure you make the right choice when filing.
While going through this process, spend more time with friends and family. Bankruptcy proceedings can be extremely harsh. It can take a long time, take a great emotional toll and cause people to feel embarrassed and defeated. Avoidance of friends of family during the process is not uncommon. But, isolating yourself from others could bring out more depression. Remember that it is not your families fault for your financial hardships and use this time to pull together and be strong.
It is still possible to get a mortgage or car loan, even if you are filing for Chapter 13 bankruptcy. However, it won’t be as easy as it may have been to get one prior to the bankruptcy. Normally, the trustee assigned to your bankruptcy must approve any new loan. In order to show that you’re capable of paying off your new loan, prepare a budget that includes its payments. Also, you need to be ready to say why you’re going to need the item.
Make sure that you act at the appropriate time. Timing is important, and that is especially true when filing for bankruptcy. For some people, filing right away is best, however for others, waiting a while is best. Find out when the correct time is for you to file for bankruptcy from a bankruptcy legal professional.
Because bankruptcy is such a challenging time that a great deal of stress, both mental and emotional, may be involved. If you want to protect yourself from stress, see to it that you hire a good attorney. Don’t think that the highest priced attorney is the best. While the person you select does not have to cost the most, they should be competent and reliable. Get referrals from those who have used a bankruptcy lawyer, talk to the bureau for better business, and take advantage of free consultations offered by most lawyers. Consider attending a court hearing so you can witness how the lawyer operates.
Before you decide to file, make yourself aware of the laws about bankruptcy. You should not transfer your assets to anyone in the year preceding your bankruptcy filing. Maxing out your credit cards immediately before filing is also illegal.
The events that lead someone to declare bankruptcy can cause great emotional distress. Use what you have learned and take responsibility for your financial health – turn your life around. 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!
