Is your debt growing and it’s looking like you may need to file for bankruptcy? Don’t fret, because you aren’t alone. Many people have discovered that bankruptcy can help them escape their financial troubles. This article can help you make sure the process starts properly.
Many people find that they must file for bankruptcy protection because they have more debt than they can afford to repay. If this sounds familiar, you should read up on the bankruptcy laws in your state. Each state has its own laws regarding personal bankruptcy. For instance, your home might be protected in some states while you might lose it in others. It is important to be cognizant of the laws in your state before filing for bankruptcy.
Don’t look at bankruptcy as a first step. Look at all the other options you may have first. You can also avail yourself of other options, such as consumer credit counseling. 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.
Exhaust every other option before making the decision to file for personal bankruptcy. You have other choices, including consumer credit counseling. Bankruptcy permanently affects your credit, so avoid filing until you have exhausted all of your other options.
A key tip for those filing a personal bankruptcy petition is to always be completely honest in all documentation. Don’t hide income or assets from your lawyer or the bankruptcy trustee or you may find yourself in legal trouble.
Always remind your lawyer of specifics that are important to your case. Chances are that you may have forgotten to tell them about certain specifics that may be important to your filing. Ultimately, this is your bankruptcy and your financial future, so never hesitate to advocate on your behalf.
One critical element for anyone filing a petition for bankruptcy is to be honest in everything you do. 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.
Secured Card
After you have declared bankruptcy, you may have a hard time being approved for unsecured credit. If you find yourself in this situation, you may want to think about getting a secured card or two. This will be a demonstration of the seriousness with which you view rebuilding your credit rating. After using a secured card for a certain amount of time, you might be offered an unsecured card once again.
Try going to a personally recommended bankruptcy lawyer instead of using a phone book or the Internet. To handle your bankruptcy, you need a trusted attorney, not a shady one that is out to take your money.
Prior to filing for bankruptcy, research which assets will remain exempt from creditors. There are some assets that cannot be seized through bankruptcy, and the law lists those assets. It is important that you read this list before filing for bankruptcy, so that can find out whether or not your most prized possessions will be seized. It is important to know what types of possessions may be taken away before they actually are seized.
As you can probably see, you are not alone in needing to file for bankruptcy protection. However, you are in a better position to do so than they are, because you’ve read this article. The tips in the article above will help you get through your bankruptcy.