Those dealing with personal bankruptcy filing are known to experience feelings of embarrassment, irritation and shame. Those who experience it are stuck worrying about how they can pay their debts while being able to live day to day, or so they think. They think they are stuck, but they really aren’t, and neither are you, thanks to the following tips.
Unsecured Credit
Getting unsecured credit post-bankruptcy will likely be difficult. If that is the case, you should try applying for one, or two secured cards. This at least shows you are making an honest attempt at reestablishing your credit worthiness. After a time, you are going to be able to have unsecured credit cards too.
If you know people who have filed for bankruptcy, ask them who they would recommend rather than relying on Internet reviews or worse, just randomly picking someone out of 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.
Do some research about laws and legislation before filing. Bankruptcy laws are in constant flux, so just because you knew the law last year doesn’t mean that the laws will be the same this year. A qualified bankruptcy attorney is the best source for the latest information regarding the laws in your state.
Understand the differences between a Chapter 7 bankruptcy and a Chapter 13 bankruptcy. There is a wealth of information online about each type of bankruptcy and their respective pluses and minuses. If you have trouble understanding the wealth of information, talk to your lawyer so he or she can help you make an informed choice.
It is in your best interest to be abreast of your rights in petitions for bankruptcy. There are bill collectors who will claim that you cannot add your debts to your bankruptcy case. Only a small number of debts are not dischargeable, including student loans and child support obligations. If you are told by a debt collector that your debts are not dischargeable, make a record of your conversation and report the individual to the proper state authorities.
If you are going to file for bankruptcy make sure you are prompt. Some people will just ignore their outstanding debts, hoping that someone or something will come and save them, but this never ends well. If you have failed to make payments for several months but have continued making purchases on credit, your petition may be denied. Once you realize that the debt you have is too much for you to handle, start thinking about talking to a bankruptcy attorney, they can guide you throughout the entire process.
Whenever you file a petition for bankruptcy, do not leave out any information about your finances or assets. If you don’t do this, your file could be delayed or dismissed. Even if it looks insignificant, you must add it to your documents. This includes income from second or part time jobs, vehicles and loans.
Under no circumstances should you take out a huge cash advance on any of your open credit cards before filing for bankruptcy. This is against the law and it is fraud. After the bankruptcy process you can be made to pay it all back to the creditor.
After reading, you can see you do have options available, and bankruptcy does not signal the end of the world. In the beginning, it can be hard, but there is no reason why bankruptcy should defeat you. Put the information you have found in this article to use so that you can have a very successful bankruptcy.
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