The economy is not in good shape. The result of the dreadful economy is that many people are losing their jobs and falling into uncontrollable debt. Many of these debts end up in bankruptcy filings, which just makes the problem worse. If you or a loved one is considering bankruptcy, find out what to do about this situation by reading this article.
After filing for bankruptcy, you may have difficulty getting approved for unsecured credit. This being the case, look at secured card options. This will show people that you are serious about getting your credit record back in order. After a certain time, you will then be able to acquire credit cards that are unsecured.
Be as honest as you possibly can when filing for bankruptcy; hiding liabilities or assets will only hurt you in the long run. Penalties may include fines, imprisonment or denial of the filing. Do not hold anything in secret and create a strategy on how you will deal with the things you are facing.
You should not have to pay for a consultation with a bankruptcy attorney. Make sure you ask lots of questions. Most lawyers provide a consultation for free, so consult with many of them before picking which one you want to hire. Make a decision when all your concerns and questions have been addressed well by one lawyer in particular. You do not have to give them your decision right after the consultation. So you have sufficient time to speak with a number of lawyers.
Seek a less serious option prior to filing for bankruptcy. For instance, a consumer credit counseling program may be a better bet if your debts are relatively small. You may have the ability to negotiate much lower payments, just be sure any debt modifications you agree to are written and that you have a copy.
Many bankruptcy lawyers offer free consultations, so go to several before choosing one. Make sure you meet with a licensed attorney rather than a paralegal or assistant, because it is illegal for these people to give legal advice. Looking for an attorney will help you find a lawyer you feel good around.
Isolate Yourself
Don’t isolate yourself from family and friends. The whole process of filing for bankruptcy is hard. It takes time and a lot of people feel stressed and ashamed throughout this procedure. It is not uncommon for a person to feel the need to pull away from loved ones during the process. This isn’t true though because when you isolate yourself you will just start to feel worse and may become depressed. Spend time with your family, talk about your problems and find things that relax you.
Do not file for bankruptcy if your income is greater 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.
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. If you choose Chapter 7, you are no longer responsible for joint debts. Sadly, this will not be the case for your co debtor. Your creditors may simply turn their attention to your hapless acquaintance.
Although the economy is slowly picking up, there are still many people left without jobs and a decent wage. Even if you do not have a steady income, you may still be able to avoid bankruptcy. With any luck, you now see that options exist to help you steer clear of bankruptcy. Good luck to you.
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