Bankruptcy filings bring both worry and relief, simultaneously. Be prepared to go through your finances with a fine toothed comb and share the information with lots of unfamiliar people. The relief is that your phone will stop ringing with harassing phone calls from debt collectors, and you can begin to rebuild your credit. Continue reading to learn what you need to know to make your bankruptcy almost painless.
It is important that you increase your knowledge on personal bankruptcy by reviewing websites that provide reliable information. The U.S. Department of Justice and American Bankruptcy Institute are both sites that provide free advice. The more you know about it, the better you are able to make the best decision for your situation and to make sure that the bankruptcy proceedings move forward with minimal setbacks.
After you have declared bankruptcy, you may have a hard time being approved for unsecured credit. If that is the case, you should try applying for one, or two secured cards. They offer you the chance to demonstrate the seriousness with which you now take your financial obligations. Once creditors see that you are making an effort to restore your credit, they may allow you to get an unsecured card in the future.
Try to find a bankruptcy attorney who is personally recommended, rather than off the Internet, or out of the yellow pages. Some companies just want to take advantage of you, so it is important that you have help from someone you trust.
No good will come of trying to conceal your assets or your liabilities in the bankruptcy process; you want to be scrupulously honest when you declare bankruptcy. It is necessary to be open regarding both the positive and negative aspects of your financial life. Don’t hold anything back and formulate a smart strategy to deal with the reality you are facing.
It is important to understand your rights when filing bankruptcy. Bankruptcy might help you get back things you thought you’d lost and had repossessed, such as electronics, vehicles and jewelry. You may be able to recover repossessed property if the repossession occurred fewer than 90 days ago. Talk to a lawyer for help with the petition filing process.
Before filing for bankruptcy, hire a qualified attorney. Filing for bankruptcy is complicated and there is no way you can understand all you need to know. A lawyer that specializes in bankruptcy can make sure you are following the correct procedures in your filing.
There are differences between Chapter 13 bankruptcy and Chapter 7; be sure to familiarize yourself with both. Take time to research this online and see the pros and cons for filing each one. If you’re really not sure how this all works after your research, meet with your lawyer and ask them prior to making a decision.
If you are making more money than you owe, bankruptcy should not even be an option. Bankruptcy may appear like the easier way to avoid paying your old bills, but it is a huge mark on your credit score and remains there for up to 10 years.
Know the rights that you have as you file for bankruptcy. Bill collectors can try to scare you into believing that your debt will not be cleared. There are, indeed, some debts that cannot be bankrupted. Among them are student loans, child support and alimony payments. If a collector tells you your debt won’t be discharged in your bankruptcy and you know that it will, report the collector to the attorney general’s office in your state.
When you are going through bankruptcy proceedings, it is sure to cause a great deal of stress. To have a reliable and trustworthy guide through the process, find a highly qualified attorney. Be sure that you consider more than the expense when you choose a lawyer. Hire the best attorney you can afford, not the one who charges the most. Make sure people who have experienced bankruptcy give your referrals. Often, watching a bankruptcy proceeding can give you clues to the quality of a lawyer.
Be certain to have a good understanding of bankruptcy regulations prior to filing a petition. For instance, somebody cannot transfer assets from a filer’s name up to a year after they file. Also, it is illegal to load up your credit cards with debt right before filing occurs.
Consider any other options available before filing for personal bankruptcy. Think about seeing a credit counselor. This does not necessarily have to cost you, as there are some organizations that will assist you for free. They can work with those you owe money to in order to give you lower payments and lowered interest rates, too. They pay your debts and you repay them.
Do not use credit cards for cash advances prior to filing a bankruptcy petition, as it can affect the dischargeability of the debt. This is fraud, and you will be required to pay that money back.
Although it is tempting to toss out the idea of ever owning credit cards again, think again. That is not a great idea, because using credit builds better credit. If you don’t use your credit, you won’t be able to make big purchases on credit in the future. Start with one credit card to get your credit going in the right direction.
Filing a claim doesn’t always result in losing possessions. You will be able to keep your personal property. This will include things like clothes, jewelry and electronics. This will all depend on the type of bankruptcy you choose, your finances, and your state’s laws, but you could hold onto your large assets like the car and the family home.
There are pros and cons to filing bankruptcy. Just know that what you learn today is going to help you out a lot in learning about bankruptcy. The information you just read will greatly simplify the bankruptcy filing process. Use the tips presented here to help the process goes smoothly and more comfortably.
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