There is hope for a better life after bankruptcy, no matter the unpleasantness that went before. The main purpose of filing is to start a new and improved financial situation. Completing the bankruptcy process properly can lead to a new financial future.
Determine which of assets are safe from seizure and which are not before filing for personal bankruptcy. The Bankruptcy Code provides a listing of the various asset types that are not included in the bankruptcy process. It is vital that you completely understand which assets are protected and which assets can be seized prior to filing bankruptcy. You wouldn’t want to unexpectedly lose any possessions you treasure.
Be certain you understand all you can about bankruptcy by researching reputable sites that offer good information. The United States Department of Justice and American Bankruptcy Institute are both sites that provide free advice. The more you know, the better equipped you’ll be to make the wise decisions needed for a successful bankruptcy.
Any bankruptcy consultation should be free of charge. The majority of lawyers offer their first consult at no cost, so ensure you meet with several to find one that you like. Decide which lawyer you like best buy reviewing all of the lawyers’ answers to your questions. Choose the lawyer who addressed your issues the best. You don’t have to make your decision right after this consultation. That gives you the chance to speak to a number of lawyers.
Bankruptcy is tricky and hiring a good lawyer will be a must. Bankruptcy is a complex process, and you probably don’t know all the information that is required to navigate it. A qualified bankruptcy attorney will guide you through the steps and help you do everything properly.
Chapter 13
Don’t look at bankruptcy as a first step. Look at all the other options you may have first. Alternatives do exist, including consumer credit counseling. Bankruptcy is a serious negative on your credit history so make sure you have no other options before you file. It is important to keep your credit history as positive as possible.
Do some research to find out more about Chapter 13 and Chapter 7. Chapter 7 eliminates all debts. This includes creditors and your relationship with them will become no longer existent. Chapter 13 is different, though. This type of bankruptcy entails an agreement to pay off your debts for five years prior to wiping the slate clean. It is worth while to take your time to research both types of bankruptcy to decide which option works best for you, and your financial situation.
You could see about filing for Chapter 13 personal bankruptcy. If you have less than a quarter of a million dollars in debt that is unsecured and a regular income, you are eligible to file a Chapter 13. This will allow you to keep your personal property and real estate and repay your debts via a debt consolidation plan. Expect to make payments for up to 5 years before your unsecured debts are discharged. Remember that you must make every payment. Missing even one could cause the court to dismiss your case.
Once your initial filing is complete, it is time to take some time to relax a little. It is common for people to stress when filing. Don’t let the process control you in a negative way. You will get through it, and you should make an effort to remember that. Your life will see improvement after you get past the bankruptcy.
Be warned that after your bankruptcy, you may stand out as a leper to credit institutions. You may be unable to get a simple credit card. In this event, you should attempt to apply for a secured card or two. This will prove that you want to improve your credit score. When you have done well with secured cards for a while, you should be able to obtain an unsecured credit card.
Do not use the word “shame”, if you go bankrupt. Feelings of low self-worth, shame and guilt are common for those who have come to the point where bankruptcy is their only option. Feelings such as these are not of value to you and it is possible for them to be psychologically harmful. The best way of dealing with bankruptcy is to keep a positive attitude during this time of financial upset.
Be sure you know the bankruptcy laws before you think about filing. For instance, you need to know not to shift assets into someone else’s name in the year leading up to your filing. Also, you must never incur significant new obligations must prior to filing for bankruptcy.
As mentioned earlier, the events that drive anyone to declaring financial bankruptcy are not a happy story. But, that does not mean that your post-bankruptcy life cannot be fantastic. Actually, if you use the advice and ideas from this article, you will be able to turn bankruptcy into a turning point for your life.
If you know people who have filed for bankruptcy, ask them who they would recommend rather than relying on Internet reviews or worse, just randomly picking someone out of the phone book. Some companies just want to take advantage of you, so it is important that you have help from someone you trust.