Bankruptcy will always be a stressful event in a person’s life. Many people are fixated on the question as to how they will repay their debts so much that they are unable to live their daily lives. However, no one is really stuck with regards to personal bankruptcy; you will learn that in this article.
After you have declared bankruptcy, you may have a hard time being approved for unsecured credit. If this happens, instead you should turn your attention to secured credit cards. This will show other people that you’re serious when it comes to having your credit record in order. After using a secured card for a certain amount of time, you might be offered an unsecured card once again.
There is hope! Filing for bankruptcy may allow you to get back property, such as an auto, jewelry, or electronics, that you may have had repossessed. If the items were repossessed less than three months prior to your filing date, you may be able to recover them. Consult with a lawyer who is able to assist you in the filing of your petition.
Check into less drastic solutions prior to declaring bankruptcy. One example would be that a consumer credit program for counseling if you have small debts. 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.
Chapter 13
Do some research to find out more about Chapter 13 and Chapter 7. If you file using Chapter 7 bankruptcy, you will get all your debts eliminated. Any debts that you owe to creditors will be wiped clean. If you file using chapter 13 bankruptcy, you will go through a sixty month repayment plan prior to all your debts being completely dissolved. It’s imperative that you know the differences among the various categories of bankruptcy so that you are able to choose the wisest one for you.
Spend time with friends and family to keep your stress levels to a minimum through the bankruptcy filing process. The process for bankruptcy can be brutal. Not only is the process long, but it can be stressful, and many people feel ashamed when they do it. It is not uncommon for a person to feel the need to pull away from loved ones during the process. On the other hand, isolation of a self-imposed nature can only worsen your feelings, opening the door to mental depression to join your financial depression. For this reason, if you are undergoing personal bankruptcy proceedings, you must continue to live a normal life, spending time with your friends and relations.
If you are making more money than you owe, bankruptcy should not even be an option. Although you may see bankruptcy as a free pass to eliminate your debt, if you can slowly whittle away at your debt with your income, it will be much better than killing your credit score with a bankruptcy filing.
Once your initial filing is complete, it is time to take some time to relax a little. It can be several months between the initial filing and the final discharge of debts. This stress could morph into clinical depression, if you fail to adequately address the problem. Life is going to get better once you get through this.
Don’t take big cash advances off your credit cards in the days prior to filing for bankruptcy. Doing so constitutes fraud. You can easily be ordered to repay all of this money, by the courts.
Personal Property
Remember that just because you have filed for personal bankruptcy it will not cause you to lose everything you own. Personal property is exempt from bankruptcy claims. This will include things like clothes, jewelry and electronics. 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.
Once your bankruptcy has been complete for a month or two, acquire multiple copies of credit reports. You want to see an accurate record of the closure of your accounts and the discharge of your debts. If you find any discrepancies, immediately follow up on them so you can continue to repair your credit.
This article should have enabled you to feel a little more confident about your personal bankruptcy. You may have found yourself being fearful when you began thinking of bankruptcy, but once you get through it, you will find it’s not the end of the world. Keep the advice here in mind so that you can work toward getting back on your feet!
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