Whatever leads you to bankruptcy is a sad tale, but that need not mean that’s the only story to tell for the rest of your life. The whole point is to wipe the slate clean and have a new chance at life. Continue ahead to learn how you can smooth out the bankruptcy process so it’s not a financial disaster.
The primary catalyst for filing personal bankruptcy is having a large amount of debt that can’t be readily repaid. If this sounds like you, start familiarizing yourself with your state laws. Every state has a separate law having to do with bankruptcy. Your home and other major assets may be protected in your state, while they are vulnerable in other states. Be sure you educate yourself on local laws prior to filing.
Think through your decision to file for bankruptcy carefully before going ahead with it. Look into credit counseling to see if it could help you work out of your debt without bankruptcy. Bankruptcy will leave a permanent scar on your credit report and before you take this huge step, you should search through every available option first, to help try and limit the damage to your credit.
Know and understand the difference between filing for Chapter 7 bankruptcy versus Chapter 13 bankruptcy. There is a wealth of information online about each type of bankruptcy and their respective pluses and minuses. 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.
Do not forget to make quality time for friends and family members. The process for bankruptcy can be brutal. This long and stressful process can leave a person feeling guilt ridden, unworthy and ashamed. Avoidance of friends of family during the process is not uncommon. Isolating yourself from your loved ones can lead to feelings of depression. Make it a point to catch yourself if you feel yourself pulling away from others. Tell others that you would like to do some enjoyable things together while you go through bankruptcy process, then do it.
Don’t file for bankruptcy the income that you get is bigger than your bills. Although bankruptcy might seem to be an easy way of being able to pay for your debts, you must remember that it is something that will remain roughly about 7 to 10 years in your credit report.
Talk with your lawyer about getting lower payments for any car you wish to keep. Chapter 7 usually can help payments be lowered. There are a few requirements that you have to meet to be eligible, though. You have to have bought the car more than 2.5 years ago, your loan’s interest rate needs to be over a certain amount, and your employment history has to be good.
Make sure that you act at the appropriate time. Timing is very important when it comes to personal bankruptcy filings. There are situations in which it is in your best interest to file immediately, but other times it is advisable to wait. Speak with a bankruptcy lawyer to discuss the proper timing for you to file bankruptcy.
Bankruptcy can be overwhelming to most people, and can be quite stressful. In order to keep things together and protect yourself from excess stress, be sure to hire a competent attorney. Do not hire based on cost. Think about quality rather than cost when hiring an attorney. Make sure people who have experienced bankruptcy give your referrals. If you really want to check up on them check out how well they do at court hearings.
Filing Bankruptcy
Don’t drag your feet when it comes to filing bankruptcy. Many people simply try to ignore their financial troubles, hoping that they will somehow go away, but this is a huge mistake. Personal debts can spiral out of control very quickly, and if you don’t take care of them, you may find yourself facing foreclosure or wage garnishment. Consider all possible options before filing bankruptcy.
When you file for bankruptcy, it doesn’t mean that you will lose your assets. You may be able to keep certain property. Whether jewelry, furnishings, electronics and even clothes – these items can be protected. The laws of your state and the kind of bankruptcy for which you are filing, coupled with your financial situation, will determine what personal property you are allowed to retain. Additionally, the retention of large assets, such as your automobile and your home, is determined by these considerations.
Make a detailed list of the debt that you have. This is going to be the foundation of your filing for bankruptcy, so be certain to include every debt you know about. Include your exact balance on each account. Take your time and make sure all the numbers are correct.
Do your research before hiring a bankruptcy attorney. A lot of rookie lawyers get their start in bankruptcy law. Sort through your different options to find an experienced lawyer who has all the necessary credentials. One resource that should prove extremely helpful is the Internet. You should be able to find the lawyer’s record online, as well as reviews from their previous clients.
As stated before, unhappy events may have led you to declare bankruptcy. On the other hand, the new beginning that bankruptcy offers can lead to a new life story. Bankruptcy is not the end. Follow the tips given here in order to make it a new beginning.
This is a limited-time offer. We are not able to guarantee availability if you wait!
