Debt has become a problem for many people facing this tough economy. Their bills pile up higher while debt collectors and creditors keep their phones ringing constantly. If you find yourself in these circumstances, you might want to think about filing for personal bankruptcy. To find out if filing for personal bankruptcy is the right thing for you to do, read on.
Personal Bankruptcy
Be certain you understand all you can about bankruptcy by researching reputable sites that offer good information. The United States Some valuable resources include the U.S. Dept of Justice and American Bankruptcy Institute. The more you know, the better equipped you’ll be to make the wise decisions needed for a successful bankruptcy.
Be sure everything is clear to you about personal bankruptcy via looking at websites on the subject. The U.S. Department of Justice, NACBA, and American Bankruptcy Institute websites are all great places to go for up-to-date information. By having more knowledge, you can make the right decision, as well as be sure you are ensuring that your personal bankruptcy case goes smoothly.
Avoid exhausting your savings or emptying your retirement accounts to pay off creditors if you are considering filing for bankruptcy. Leave your retirement accounts untouched unless there is absolutely no other alternative. 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.
Do not be afraid to remind your attorney of important specifics of your case. Don’t just assume that the attorney will remember it automatically. Your case and future are affected by the attorney’s action, so never be afraid to communicate.
Don’t look at bankruptcy as a first step. Look at all the other options you may have first. There are plenty of other options open to you, like consumer credit counseling. Before you take the drastic move of filling for bankruptcy and living with a long lasting bad credit history, make sure to consider using another way that may not be as damaging to your credit.
Unsecured Credit
After you have declared bankruptcy, you may have a hard time being approved for unsecured credit. If you find that to be the situation, consider requesting secured cards. That will show lenders that you are committed to rebuilding your credit. After a while, you may be able to get unsecured credit again.
Talk to a lot of different bankruptcy lawyers; most of them will give you a free consultation. Always ensure that the person you meet with is a real lawyer, not a legal assistant or paralegal. These people can’t give legal advice. Taking the time to compare lawyers will ensure that you get a person that you can be yourself around.
If you are truly faced with bankruptcy, avoid blowing your savings or retirement money, trying to pay off debts. You should make every effort to leave your retirement accounts untouched until your retire. You may need to withdraw some funds from your savings account, but don’t take everything that is there as you will be bereft of any financial backup if you do.
Make sure your home is safe. Filing for bankruptcy will not always result in losing your home. There are mitigating factors, such as lose of value, or multiple mortgages. You could also check out the homestead exemption. This lets you continue living in your house, depending on whether you meet certain financial requirements.
Look at all of your options prior to deciding to file for bankruptcy. Ask a bankruptcy lawyer if a debt repayment plan or rate reduction would be of benefit. If a foreclosure is your reason for filing look into your options with your bank first, such as a loan modification. Your particular loan holders can provide a lot of assistance if you’re just willing to speak with them. You can negotiate lower rates, longer terms, and other means of repayment that may keep you from having to file a claim. Above all else, what creditors want is to get their money. Sometimes they would rather settle for a repayment plan instead of a debtor who is bankrupt.
Clearly, significant resources and assistance can be had by anyone contemplating personal bankruptcy. If you go into the process armed with knowledge and confidence, you can wipe away your debt and give yourself a fresh start.
Do not abandon hope. There may still be way to get repossessed items back after you file for bankruptcy. If the repossession occurred within 90 days from your filing date, it is possible that some of your property can be returned to you. A lawyer will be able to assist you with filing the paperwork to get the items back.