Those dealing with personal bankruptcy filing are known to experience feelings of embarrassment, irritation and shame. Many live with the constant fear of being unable to repay their debts while also maintaining a decent standard of living. As you will soon learn, there is a way out.
Think through your decision to file for bankruptcy carefully before going ahead with it. Alternatives do exist, including consumer credit counseling. Bankruptcy permanently affects your credit, so avoid filing until you have exhausted all of your other options.
Generally bankruptcy is filed when a person is facing insurmountable debt. When you are faced with this issue, begin to familiarize yourself with your state’s laws. Different states have different laws regarding bankruptcy. Your home and other major assets may be protected in your state, while they are vulnerable in other states. You should be familiar with the laws for your state before filing for bankruptcy.
When you feel certain that you must file for personal bankruptcy, refrain from squandering your life savings to pay off unsecured debt. Don’t touch retirement accounts unless you don’t have a choice. 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.
Secured Card
After filing for bankruptcy, you may have difficulty getting approved for unsecured credit. 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. After using a secured card for a certain amount of time, you might be offered an unsecured card once again.
The most important tip a person filing for personal bankruptcy can remember and follow is to be completely transparent in all dealings. Withholding or lying about certain information can seriously worsen your financial situation. It could lead to being unable to file for bankruptcy or even legal trouble.
It is important to list all your assets and liabilities during the bankruptcy proceeding. Failure to do so will only cause you problems in the end. Penalties may include fines, imprisonment or denial of the filing. Bankruptcy can be a chance to simplify your finances, but any schemes you employ to conceal the truth can ruin that chance for you.
Personal Property
Do not abandon hope. Filing for personal bankruptcy may possibly enable you to reclaim your personal property that have been repossessed, like your car, electronics and jewelry items. If your personal property was repossessed within 90 days before your bankruptcy filing, you may have a chance of getting it back. Interview and research attorneys before choosing one to help you with your bankruptcy.
Make sure you keep reminding your attorney about any important details in your case. You should not take for granted that your lawyer will remember every important detail that you have have told him earlier without a reminder. Speak up. This is your life, and your future depends on it.
Don’t ever pay a bankruptcy attorney for a consultation, and ask a lot of questions. Most lawyers provide a consultation for free, so consult with many of them before picking which one you want to hire. You should make a final decision only once all of the questions or concerns are sufficiently attended to. It is not necessary to decide immediately after your consultation. Be sure to talk with a number of lawyers, and compare the information you receive.
Thing about filing a Chapter 13 bankruptcy. If you posses a regular source when it comes to income, and you have less than $250,000 of unsecured debt, you could file using Chapter 13 bankruptcy. The benefit of this plan is that you retain personal belongings and private real estate and your debts are repaid by an organized payment plan. 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 you must make every payment. Missing even one could cause the court to dismiss your case.
Investigate other alternatives before resorting to bankruptcy. Some alternatives to filing for personal bankruptcy include debt repayment plans, interest rate reduction plans, and debt consolidation. Talk with the personal bankruptcy lawyer to find out more. If foreclosure looms, think about getting your loan plan modified. Some lenders will make concessions rather than losing the money owed to bankruptcy. These concessions include waiving late fees, lowering interest rates, and changing the loan term. At the end of the day, creditors want to get paid, and sometimes a debt repayment plan is preferable to dealing with a bankrupt debtor.
Try to get a bankruptcy lawyer that your friends recommend, as opposed to someone that you find from the Internet or yellow pages. There are so many dime-a-dozen companies out there who make it a practice of preying on financial desperation. You need to make sure your bankruptcy goes smoothly, so find someone you know you can trust.
With any luck, this piece has shown you that financial roadblocks are not necessarily the end of the world. Bankruptcy is a serious matter, but it can be managed. Keep the advice here in mind so that you can work toward getting back on your feet!