The circumstances that culminate in a bankruptcy filing are likely unpleasant, though they do not need to define the rest of your life. The whole point is to wipe the slate clean and have a new chance at life. Keep reading to handle the bankruptcy process in a way that is a rebirth and not a financial Armageddon.
Make sure that you understand everything you can about personal bankruptcy by visiting websites that offer information. The United States Department of Justice and National Association for Consumer Bankruptcy Attorneys provide excellent information. Knowing is half the battle, after all, and these websites are the first step in learning what you need to know to make your bankruptcy smooth and stress-free.
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 stays on your credit for a whole decade, so if there are less drastic options that will solve your credit problems, it is in your best interest to make use of them.
Never shirk on the truth in your petition for bankruptcy. Lying on your filing can cause dire consequences such as: delays, penalties, being prevented from re-filing, or even jail time.
Unsecured Credit
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. If you pay what you owe back promptly at all times, you can show that you are taking steps to be responsible about your payments and credit rating. In time, you might be granted unsecured credit again.
Once you file for bankruptcy, you will have a hard time getting loans or credits. This being the case, look at secured card options. They offer you the chance to demonstrate the seriousness with which you now take your financial obligations. After a certain time, you will then be able to acquire credit cards that are unsecured.
Don’t give up. You might even be able to get back secured property that has been repossessed in the 90 days before filing. If your property has been repossessed less than 90 days prior to your bankruptcy filing, there is a good chance you can get it back. Consult with a lawyer who can help you along with filing the petition.
Never pay to have a consultation with a lawyer, and ask a lot of questions. Nearly all attorneys offer free initial consultations, so you should be able to meet with a few before you make a final hiring 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. Take the time to meet with a number of attorneys.
Before declaring bankruptcy, ensure that all other options have been considered. For example, if your debt is small, try a type of consumer counseling program. You may have luck negotiating lower payments by dealing directly with creditors, but be sure to document any get and new agreement terms in writing from each creditor.
Be certain that you can differentiate between Chapter 7 and Chapter 13 bankruptcy. Chapter 7 is the best option to erase your debts for good. Any debts that you owe to creditors will be wiped clean. Chapter 13, on the other hand, involves a five year payment period before any remaining debts are cancelled. You must know about the different bankruptcy types, and how each can affect you.
Chapter 7 Bankruptcy
Remember to understand the differences between Chapter 7 bankruptcy and Chapter 13 bankruptcy. In Chapter 7 bankruptcy, your debts are all eliminated. Any debts that you owe to creditors will be wiped clean. If you file for Chapter 13 bankruptcy, however, you will enter into a 60 month repayment plan before your debts are completely dissolved. In order to choose the right bankruptcy option, you need to know the differences between these kinds of personal bankruptcy filings.
A free consultation is standard for bankruptcy attorneys, so shop around before settling on one. Ensure that you have a meeting with a real lawyer instead of an assistant, since they can provide the best advice. Comparing different lawyers makes it possible to find one with whom you work well.
After you have filed for bankruptcy, enjoy your life. Lots of debtors are stressed out when they’ve come to filing time. Stress easily leads to depression, if you are not maintaining control of your emotions. Your life will most likely improve once you’re over this hump, so relax.
It is possible to keep your home. Filing for bankruptcy does not always mean you will end up losing your home. You can still keep your home, it just depends on your specific situation and the value of your home. If this is not the case, find out more about Homestead Exemptions you might qualify for if you meet certain financial requirements.
Chapter 13
Consider Chapter 13 bankruptcy for your filing. You are eligible for filing bankruptcy under Chapter 13 if you work and owe less than $250,000. Filing a Chapter 13 will let you keep personal items and real estate while you pay down your debt in a consolidation plan. Generally, this stays in effect for up to 5 years. Afterwards, your unsecured debts clear from your accounts. Keep in mind that even missing one payment can be enough for your whole case to get dismissed.
Before filing for bankruptcy, learn your rights. You might hear from your creditors that your debts cannot be canceled through bankruptcy. Only a few debts are immune to bankruptcy. Taxes, student loans and child support would be the major ones. If you are unsure about specific types of debt, check the bankruptcy laws in your state or consult an attorney.
Don’t file for bankruptcy the income that you get is bigger than your bills. Although bankruptcy might seem to be an easy way of being able to pay for your debts, you must remember that it is something that will remain roughly about 7 to 10 years in your credit report.
Prior to filing for bankruptcy, tell yourself that you cannot use the word “shame”. For many people, bankruptcy is a source of guilt and feelings of worthlessness. These feelings can cause you to make rash decisions and cause psychological problems. If you want to cope with your bankruptcy filing successfully, you must maintain a positive point of view.
Make sure that you disclose every bit of financial information on your bankruptcy petition. If the court thinks you are attempting to conceal information, your petition could be denied. Add every summer, no matter how insignificant, to your documentation. Include any income from jobs that you do on the side or assets, such as property and vehicles.
If you are thinking about filing for bankruptcy, one of the first things you should do is look into the laws of your state. For example, it is forbidden for an individual to transfer any assets away from the name of the filer within the twelve months preceding filing. Not only that, but the filer cannot lawfully accrue additional debt just prior to filing.
As stated in the above article, anytime someone is forced into bankruptcy is never a happy situation. Afterward, however, you can have an easier time. As a matter of fact, if you put the ideas in this article into play, you can let bankruptcy proceedings a pivotal moment in your existence towards a brighter future.