Frustration, sadness, anguish and anger are feelings that are felt by anyone who experiences personal bankruptcy. People going through bankruptcy worry about living in debt while trying to survive. However, no one is really stuck with regards to personal bankruptcy; you will learn that in this article.
It’s important that you understand what bankruptcy is and how it will change your life before you attempt to file a claim. Many sites, including the U.S. DOJ, along with a number of other bankruptcy institutes and attorneys specializing in bankruptcy can give you invaluable information. By having more knowledge, you can make the right decision, as well as be sure you are ensuring that your personal bankruptcy case goes smoothly.
One of the most important things to remember when filing for bankruptcy is to be honest and truthful every step of the way. Don’t hide income or assets from your lawyer or the bankruptcy trustee or you may find yourself in legal trouble.
Unsecured Credit
After a bankruptcy, you may still see problems getting any kind of unsecured credit. A great way to rebuild your credit is to apply for a prepaid credit card. They offer you the chance to demonstrate the seriousness with which you now take your financial obligations. After a time, you are going to be able to have unsecured credit cards too.
Try going to a personally recommended bankruptcy lawyer instead of using a phone book or the Internet. Some companies just want to take advantage of you, so it is important that you have help from someone you trust.
Prior to filing for bankruptcy, determine which assets, if any, are exempt from being seized. Certain assets, as listed in the local bankruptcy regulations, are immune from seizure during bankruptcy. It is important that you read this list before filing for bankruptcy, so that can find out whether or not your most prized possessions will be seized. If you do not read this list, you could be in for some nasty surprises in the future, if some of your most prized possessions are seized.
Chapter 13
Make sure that you understand the difference between Chapter 13 bankruptcy and Chapter 7 bankruptcy. Chapter 7 involves the elimination of all of your debt. Your former ties with creditors will cease to exist. Chapter 13, on the other hand, involves a five year payment period before any remaining debts are cancelled. You need to be aware of the pros and cons of each type of bankruptcy so you can correctly select the best choice for your situation.
Take steps to ensure your home is protected. There are many options available to help protect you from losing your home. For instance, if your home value has dropped recently, or even if you happen to hold a second mortgage, you may not necessarily lose the home. Otherwise, try looking into house exemptions that may let you remain in the home if you meet certain financial threshold requirements.
Make sure that you really need to file for bankruptcy. Perhaps consolidating your existing debt can make it easier to manage. Filling for bankruptcy could be a long and stressful process. Remember that your credit will be affected by the mark of personal bankruptcy for a long time. This is why you must make sure bankruptcy is your last resort.
When you file for bankruptcy, you should be very aware of your rights. Do not rely on your debtors information about whether or not certain loans can be included in your bankruptcy. There are few debts that can’t be discharged. If a collector uses this tactic about debt that can, in fact, be discharged through bankruptcy, report the collection agency to the attorney general’s office in your state.
Personal Bankruptcy
Now that you’ve read this article, I hope you can see that having personal bankruptcy doesn’t necessarily mean doom for you. At first it can be difficult, but personal bankruptcy can be overcome. Keep the advice here in mind so that you can work toward getting back on your feet!
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