Filing for bankruptcy must not be taken lightly. If you take a few moments to check out the different tips and tactics listed in the text below, you can begin to realize how to navigate your way through the tough mine field that is bankruptcy. Try to learn everything you can before making any decisions.
Ask yourself if filing for bankruptcy is truly your best option. Look into other options, such as consumer credit counseling. Be certain that bankruptcy is the only option you have before pursuing this course because bankruptcy is always evident on your financial and credit history.
Think through your decision to file for bankruptcy carefully before going ahead with it. Other available options include consumer credit counseling. Since your credit history will forever note the bankruptcy, you want to make sure that you have tried everything else before you take an action such as this, in order to minimize the effect it will have with regard to your credit history.
If you are truly faced with bankruptcy, avoid blowing your savings or retirement money, trying to pay off debts. Unless there is no other choice a retirement account should not be used. Although you may need to tap into your savings, you should not use up all of it right now and jeopardize the financial security of your future.
You may end up losing more than you bargained for when you file a bankruptcy claim, so be sure that you know just which assets may be taken before filing. Check the bankruptcy laws in your state to find out if certain items are excluded from your bankruptcy filing. It is vital that you know the things on this list prior to filing for bankruptcy, in order to determine which of your possessions will be taken away. If you don’t read it, you could have nasty surprises pop up later due to your prized possessions being seized.
If you aren’t totally honest about your assets when filing a bankruptcy petition, you could get into serious trouble. The lawyer representing you when you file needs to have full knowledge of your financial situation. Being honest is both the right thing to do and, moreover, it is required by law.
Once you file for bankruptcy, you will have a hard time getting loans or credits. 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, it may be possible for you to obtain unsecured cards.
Do not abandon hope. Once bankruptcy has been filed, you may be able to regain possession of items such as electronic goods or cars that were taken away from you. If it has been 90 days or less between the repossession of your property and your filing, you might be able to get your property back. Interview and research attorneys before choosing one to help you with your bankruptcy.
You should be able to meet with a specialized lawyer for free to ask your 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. Choose an attorney who is experienced, educated and well-versed in bankruptcy laws. Take your time before you decide to file after you meet with your lawyer. That gives you the chance to speak to a number of lawyers.
Before you decide to file bankruptcy, be sure to check for any new laws that may apply to your case. This area of law is in constant flux and it is imperative that you know where the law stands at the time you file for your bankruptcy. To stay up-to-date on these laws, check out your state’s government website.
Never give up. You may be able to regain property like electronics, jewelry, or a car if they’ve been repossessed by filing for bankruptcy. If it has been 90 days or less between the repossession of your property and your filing, you might be able to get your property back. Talk to a lawyer for help with the petition filing process.
Chapter 13
Before filing for bankruptcy, determine whether Chapter 13 or Chapter 7 is appropriate for your financial situation. All debt will be eliminated with Chapter 7. All creditor relationships will be severed. With a chapter 13 bankruptcy, a 60 month period of time will be established in which you will repay the as much of your debt as possible. Following the 60 month period of time, the remainder of your debt will be excused. In order to choose the right bankruptcy option, you need to know the differences between these kinds of personal bankruptcy filings.
Before you file for bankruptcy, make sure you understand your rights. It is not unusual for creditors to claim that their debt is not able to be discharged. Only a few kinds of debt, like student loans or child support, are ineligible for bankruptcy. If you are unsure about specific types of debt, check the bankruptcy laws in your state or consult an attorney.
Learn of new laws prior to deciding to file for bankruptcy. Bankruptcy laws are in constant flux, so just because you knew the law last year doesn’t mean that the laws will be the same this year. Your state will have a website to check, or a number you can call, to learn the latest changes in the bankruptcy laws.
Do not think of filing for personal bankruptcy as a shameful thing. For many people, bankruptcy is a source of guilt and feelings of worthlessness. These feelings, however, are of no benefit to anyone, and they can be detrimental to your mental health. These difficult financial times can easily take their toll on anyone. One of the best ways to cope with the situation is to maintain a positive attitude.
Before you make the final decision to file bankruptcy, consider the other options you have. You may want to consider credit counseling. A number of non-profit companies can assist you. Their job is to lower your payments and interest through negotiations with your creditors. Once you pay them, they make the payments to your creditors.
Although it is tempting to toss out the idea of ever owning credit cards again, think again. Using credit helps you build up your credit again. Good credit is needed to make major purchases, such as those for homes and automobiles. However, if you don’t use credit, you will be unable to establish a good credit history, which is necessary in order to make those purchases. Take it slow and get yourself one credit card and slowly rebuild your credit.
After you have filed for bankruptcy, enjoy your life. Many people feel a lot of stress while they work through the bankruptcy process. The stress of dealing with bankruptcy could cause you to fall into a depression, unless you take steps to take care of yourself. Life will get better; you just need to make it through the bankruptcy process.
Make a prompt decision to accept more responsibility for your financial situation before you file. Don’t use credit cards to acquire more dent right before filing. Determinations on whether to grant a bankruptcy are made after looking at your entire record; current history in addition to past issues. You need to show the judge that you are responsible by making good, present financial choices.
As the preceding article suggests, bankruptcy is not something that magically happens. There are many things that must be taken care of, and must be done right. If you apply the tips above, it is possible to be certain that your case is handled cleanly and thoroughly.