Filing for bankruptcy can be a viable for anyone who has had their possessions repossessed by the IRS. Although bankruptcy tends to destroy a person’s credit, it’s occasionally the only available option. Review this article for information on filing for bankruptcy and what effects it can have on your life.
Credit Cards
After filing for bankruptcy, you may have difficulty getting approved for unsecured credit. If this happens to you, think about applying for a couple of secured credit cards. This will prove that you want to improve your credit score. After a certain time, you will then be able to acquire credit cards that are unsecured.
Try to find a bankruptcy attorney who is personally recommended, rather than off the Internet, or out of the yellow pages. There are a number of companies who may take advantage of your situation, so always work with someone that is trustworthy.
Avoid paying for a consultation with the bankruptcy attorney, but do ask many questions. Most lawyers provide a consultation for free, so consult with many of them before picking which one you want to hire. Make a choice only if you have received good answers to all the questions and concerns you brought to the table. It is not necessary to make a final decision right away. After your consultations, do some additional research on each attorney you consider qualified for the job.
Learn all the latest laws before you file bankruptcy. Bankruptcy law has changed substantially in recent years, and therefore you must understand how such changes may affect your situation. All of these changes will be addressed on the state’s legislative site. You can also contact them directly by phone or office visit.
Always weigh your options carefully prior to deciding to dive head first into filing a bankruptcy claim. If you owe small amounts of money, you can join a counseling program or straighten your finances out by yourself. You could even negotiate for lower payments. However, you should ensure that you always obtain a written record of all the changes to your debt that you’ve agreed to.
Learn the differences between Chapter 7 bankruptcy and Chapter 13 bankruptcy. Research both types of bankruptcy online, and weigh the positives and negatives each would offer you. Ask your bankruptcy lawyer to clarify anything you don’t understand before making a final decision about which type of bankruptcy to file.
Isolate Yourself
Don’t isolate yourself from family and friends. Going through a bankruptcy can be an excruciating experience. It takes a long time, it can be stressful, and people feel unworthy, guilty and ashamed. Many people tend to hide until their process is completed. Do not isolate yourself or you will put yourself at risk for depression. Thus, you must keep living your life and socializing with those you love, no matter what is going on with your bankruptcy.
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. Stress easily leads to depression, if you are not maintaining control of your emotions. Your life will see improvement after you get past the bankruptcy.
Speak with an attorney about any fears you have about losing your car. You may even be able to get your monthly payment reduced. Sometimes, as part of the bankruptcy filing, your auto loan can be restructured so that you pay less each month. The requirements are that your car purchase has to be greater than 910 days before filing, must have a loan that is high in interest, and must have a solid work history.
Prior to filing for bankruptcy, tell yourself that you cannot use the word “shame”. Bankruptcy can sometimes leave people feeling guilty, ashamed and alone. Continuing to let yourself feel that way can damage your emotional health and does not benefit you in your endeavors to deal with your financial situation. To best deal with filing for bankruptcy, look for the positives in the situation.
It is important not to delay the process of determining whether or not you should file for bankruptcy. It’s very difficult admitting you need help, but waiting too long can actually make it worse. If you are not sure, gather all of your information and spend a little time speaking with a bankruptcy attorney; their experience can help you make the right decision.
You do not lose everything that you own when you decide to declare bankruptcy. You can often keep personal property. This may be things like jewelry, clothing, furniture and electronics. Your current state’s laws, deciding between Chapter 7 or 13, and your current financial position will determine just how much you get to keep.
Make a list of all your debts. This is going to be the foundation of your filing for bankruptcy, so be certain to include every debt you know about. Write down the exact amount. Don’t just guess. It can be difficult or even impossible to discharge your debts if you report them inaccurately; be sure that you double check your figures.
As this article has shown, there are many aspects to bankruptcy to consider. But, you need to look at all of your options rather than jumping into bankruptcy head first. Bankruptcy has negative ramifications that can effect you for awhile. Learning how to manage this situation can minimize your headaches and prevent repossession of valuable property.
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