Filing for personal bankruptcy is an important step, which should be thought through carefully. Doing your research, partially by reading articles like this one, is an important first step in filing for bankruptcy. All knowledge that you can gain at this point will only help you on the difficult road ahead.
When looking for a lawyer to handle your bankruptcy claim, the best way to go is off of a personal recommendation instead of simply flipping through the phone book. There are lawyers out there who will take advantage of your financial state and not deal honestly with you. Make sure your filing process goes as well as possible by finding a trustworthy lawyer.
It’s not uncommon to learn soon after bankruptcy that you are unable to get an unsecured credit card easily. A great way to rebuild your credit is to apply for a prepaid credit card. 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, it may be possible for you to obtain unsecured cards.
Be honest when filing for bankruptcy. Don’t hide liabilities or assets, as they’ll come back and haunt you. The professional that helps you file for bankruptcy has to have a complete and accurate picture of your financial condition. Lay everything out on the table so that you and your lawyer can devise a plan to get you out of this mess.
Don’t pay for the consultation with a lawyer who practices bankruptcy law; ask a lot of questions. Most lawyers offer free consultations, so consult with a few before settling on one. Do not make any final decisions until every question you have has been answered. You need not decide right away. This offers you the opportunity to speak with other attorneys.
Chapter 13
Make sure that you understand the difference between Chapter 13 bankruptcy and Chapter 7 bankruptcy. In Chapter 7 bankruptcy, your debts are all eliminated. Your ties with all creditors will get dissolved. If you file using chapter 13 bankruptcy, you will go through a sixty month repayment plan prior to all your debts being completely dissolved. Both options have advantages and drawbacks, so do your research before deciding.
Consider filing for Chapter 13 bankruptcy. With a consistent income source and less than $250k in debt, try filing for Chapter 13. This lets you keep any real estate and personal property while you repay all your debts through a consolidation program. This repayment period usually lasts from three to five years. If you make your payments faithfully during that time, any remaining unsecured debt will be eliminated. Remember that if you fail to make any of the payments on time, the court may dismiss your case.
Spending time with the people you love is something you should do now. Filing for bankruptcy is a difficult process. At the end of the process, many people are left with feelings of shame and worthlessness. Lots of people think they need to hide from everyone until this is all done. Isolating yourself from your loved ones can lead to feelings of depression. Thus, you must keep living your life and socializing with those you love, no matter what is going on with your bankruptcy.
If you are making more money than you owe, bankruptcy should not even be an option. 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.
Talk to a lot of different bankruptcy lawyers; most of them will give you a free consultation. Be certain you talk to the lawyer, himself, instead of a paralegal or assistant; those people aren’t allowed to give legal advice. Searching for the best lawyer will help you located the comfort you need during this time.
This article has probably helped you see that bankruptcy is a process that involves a lot of planning. Many steps have to be taken, and all of them must be performed properly. The tips you have read here were designed to give you an advantage when filing. By using them, you can sure that you’re doing everything by the book and that you won’t be caught by surprise.