There are many different reasons why the debt could have piled up on you and became overwhelming. What’s important now isn’t how it happened but rather what you intend on doing in order to handle it. You will be able to have a fresh start after all is said and done. Continue ahead to learn how you can smooth out the bankruptcy process so it’s not a financial disaster.
Be as honest as you possibly can when filing for bankruptcy; hiding liabilities or assets will only hurt you in the long run. When you file make sure whoever is handling the process is fully aware of each and every financial detail. Never hide anything, and make sure you come up with a well devised plan for dealing with bankruptcy.
One of the best ways to learn more about the bankruptcy process is to hit the Internet and look up reputable bankruptcy websites. The United States DOJ, along with a number of other bankruptcy institutes and attorneys specializing in bankruptcy can give you invaluable information. The more knowledge you have, the more you are able to make right decisions and find a new future.
Find a bankruptcy attorney who offers free consultations, and ask lots of questions. Most attorneys offer a free consultation which you should take advantage of. Meet with a few before finalizing your plans. 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 do not need to make a decision immediately after the consult. So you have sufficient time to speak with a number of lawyers.
Check into less drastic solutions prior to declaring bankruptcy. There are numerous programs out there that may assist you with your debt, like a credit counseling program, a nonprofit group, government assistance, etc. Sometimes you can negotiate a reduced payment, though you must strive to get it all in writing.
Don’t isolate yourself from family and friends. Filing for bankruptcy is a difficult process. It is long, hard and sometimes leaves people feeling guilty or ashamed. Lots of people decide they should hide from everyone else until it is all over. On the other hand, isolation of a self-imposed nature can only worsen your feelings, opening the door to mental depression to join your financial depression. Time spent with people who care about you can give you new perspective on your financial situation.
If you are truly faced with bankruptcy, avoid blowing your savings or retirement money, trying to pay off debts. No matter what you do, do not touch your personal savings unless there is no other option. If you do have to dig into your savings, make sure that you leave enough to sustain you and your family for a couple of months.
Chapter 7
Before you choose Chapter 7 bankruptcy, think about what effect that is going to have on any co-signers you have, which are usually close relatives and friends. When you file a Chapter 7, your debts will be dissolved. But, bear in mind, the debt now becomes the sole responsibility of your co-debtor.
If you plan on filing bankruptcy, never wait too long. Do not avoid your creditors; they will not go away. It is important to decide on a course of action as soon as you begin experiencing financial problems. Yet you can have debtors come after you and potentially take your home if you are not handling your debts properly. As soon as you find yourself experiencing financial problems, take action and discuss your options with a bankruptcy attorney.
You might find it difficult to obtain an unsecured credit card or line after emerging from bankruptcy. If that’s the case, it is beneficial to apply for one or even two secured cards. This will show other people that you’re serious when it comes to having your credit record in order. Then, in time, it may be possible for you to obtain an unsecured credit card.
Do not omit any information about your finances, assets or debts when filling out your bankruptcy paperwork. Leaving out information either purposely or by mistake can prolong your petition, or have it dismissed completely. It does not matter what you think of your financial situation, put the sum amount either way. Include all jobs, assets and loans.
As stated before, unhappy events may have led you to declare bankruptcy. However, once this chapter is written it is done and you can begin to start fresh. In fact, if you apply the ideas and advice given in this article, you can truly make bankruptcy a turning point in your life towards better days.