It can be hard, but at times necessary, to file for bankruptcy. The best way to deal with the process is to become educated on the subject. Continue on for some helpful information from people who have dealt with the bankruptcy process themselves.
It should go without saying, but refrain from lying in your bankruptcy filings. You might feel tempted to not declare certain assets in your bankruptcy in order to protect them from forfeiture, but if you’re found out, the process could take longer, or worse, you might be banned from filing for bankruptcy completely.
You can find a wealth of information concerning personal bankruptcy by searching for websites which offer information about it. The United States Department of Justice and National Association for Consumer Bankruptcy Attorneys provide excellent information. The more you know, the more you’ll knwo that you’ve made a wise decision and the you’re making sure your bankruptcy goes as smooth as possible.
Unsecured Credit
After a bankruptcy, you may still see problems getting any kind of unsecured credit. If this is so, apply for a secured card or two. This at least shows you are making an honest attempt at reestablishing your credit worthiness. Once you’ve built up a history of on-time payments, you may start getting unsecured credit again.
Instead of relying on random selections from the phone book or Internet, ask around and get personal recommendations. There are lots of unsavory companies and lawyers out there who prey on people who are in desperate straits. It is up to you to find someone that is trustworthy and can make the process go smoothly.
Do not use your retirement fund or savings to pay off creditors. Unless there is no other choice a retirement account should not be used. Of course you will have to touch some of your savings to get through all of the hearings, but do not put out any money that you do not have to by law.
Don’t hide assets or liabilities when filing for bankruptcy. The person you choose to file with needs to know both the good and bad aspects of your finances. Don’t hold anything back and formulate a smart strategy to deal with the reality you are facing.
Don’t pay to for an initial consultation with a bankruptcy attorney, and thoroughly question each candidate. It is a good idea to consult several attorney before deciding on one. Choose to file only if your lawyer has convinced you that this is the best decision. You don’t need to decide what to do right away. So, this gives you plenty of time to consult with several attorneys.
There are circumstances where you are able to keep your car during a bankruptcy so be sure to ask your lawyer about possibly reducing the payments. It is possible to get your car payment lowered if you file using Chapter 7. The requirements are that your car purchase has to be greater than 910 days before filing, must have a loan that is high in interest, and must have a solid work history.
A key tip for those filing a personal bankruptcy petition is to always be completely honest in all documentation. Do not try to shield some assets or income from your creditors. This can get you in serious trouble and prevent your bankruptcy petition altogether.
It is not something you want to do; however, bankruptcy is a necessity for many struggling with debt. After reading this article, you now know how people who have actually experienced bankruptcy got through the process. You will find this experience less difficult knowing that others have done it before you and survived by following these tips.