Whatever led you to declare bankruptcy is probably very sad, but that doesn’t mean that you can’t have a better life after bankruptcy. The main purpose is to give yourself a fresh, new start in life. Keep reading for how you can make bankruptcy a second chance instead of financial doom.
Unsecured Credit
It can be difficult to obtain unsecured credit once you have filed for bankruptcy. In this event, you should attempt to apply for a secured card or two. They offer you the chance to demonstrate the seriousness with which you now take your financial obligations. Once you’ve built up a history of on-time payments, you may start getting unsecured credit again.
When looking for a lawyer to handle your bankruptcy claim, the best way to go is off of a personal recommendation instead of simply flipping through the phone book. There are lawyers out there who will take advantage of your financial state and not deal honestly with you. Make sure your filing process goes as well as possible by finding a trustworthy lawyer.
You must be entirely candid when it comes to declaring assets and obligations in your bankruptcy petition. The person you choose to file with needs to know both the good and bad aspects of your finances. Do not hold back anything, and form a sound plan to make peace with your reality.
Before declaring bankruptcy, ensure that all other options have been considered. For example, there are credit counseling services that can help you to deal with smaller amounts of debt. Also, if you just contact your creditors and speak to them plainly and truthfully, the odds are good that you can negotiate a better payment structure that you can afford.
A lot of bankruptcy attorneys will let you have a consultation, so try several out. Never settle for speaking with a paralegal or an assistant. They are not trained, nor allowed, to pass on legal advice. Considering several different lawyers can help find someone to trust.
Before you file for bankruptcy, make sure you absolutely need to. Consider whether debt consolidation may be a more viable alternative. It is not a quick and easy process to file for bankruptcy. You will have trouble getting credit down the line. This is why it is crucial that you explore your other debt relief options first.
While going through this process, spend more time with friends and family. The bankruptcy process can be brutal. It is long, stressful and makes people feel like losers. Lots of people think they need to hide from everyone until this is all done. This is not recommended because you will only feel bad and this may cause you to feel depressed. It’s imperative that you spend as much time with loved ones as you can, even in the midst of your financial dilemma.
Interest Rate
Consider all options before filing for bankruptcy. You may qualify for alternatives such as debt repayment plans or interest rate reductions. Ask your bankruptcy attorney about these options. If you are about to lose your house, talk to your lender about a loan modification. There are many ways in which a lender can make adjustments that will be helpful to you. Among them are extending the loan, forgiving late charges and reducing the interest rate. Most creditors will be willing to work out an option to avoid not getting paid at all.
Before going through the Chapter 7 filing process, ensure that your co-debtors are abreast of any implications relating to this process. You may have your responsibility for your portion of the loan discharged under Chapter 7. Although filing for bankruptcy excludes your from financial responsibility, co-signers will still be expected to pay the loan amount in full.
As stated earlier, anything that leads someone to bankruptcy is not a good story. But, that does not mean that your post-bankruptcy life cannot be fantastic. 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.
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