Anything that leads you to declaring or filing for bankruptcy is probably not a happy story, but that does not mean that your life after bankruptcy cannot be better. With a clean slate, it is possible to start over both financially and personally. Don’t look at it as the end of the world; read this article to help you determine how your life will be enhanced by bankruptcy.
Use a personally recommended bankruptcy attorney instead of one found through the Internet or phone books. Some companies just want to take advantage of you, so it is important that you have help from someone you trust.
Before you file, make sure you understand current bankruptcy laws. Make sure to get the most up-to-date information concerning the bankruptcy laws in your state. To learn how the law has changed recently, go online and check your state’s website, or call the state government and ask them.
Know and understand the difference between filing for Chapter 7 bankruptcy versus Chapter 13 bankruptcy. By researching each type, you can begin to understand which method is right for you. If you have trouble understanding the wealth of information, talk to your lawyer so he or she can help you make an informed choice.
Do not forget to be around those you love. The whole process of filing for bankruptcy is hard. Having to declare bankruptcy leaves many people feeling like a failure. A lot of people hide away until the entire proceedings have been played out. However, self imposed isolation will only make you feel even worse about the process and could even lead to depression. Time spent with people who care about you can give you new perspective on your financial situation.
Car loans or mortgage loans are still a possibility when you have filed for Chapter 13. However, it can be more difficult. Before you can take out a new loan, you will have to clear it with your trustee. You will need to make a budget and prove that you will be able to afford your new loan payments. You will also need to explain why it is necessary for you to take out the loan.
Act when the time is right. Timing is very important when it comes to personal bankruptcy filings. Sometimes, filing as soon as you can is best, while other times, it is wise to get past the worst problems first. Talk with a bankruptcy attorney to find out the ideal timing for filing based on your particular situation.
Don’t drag your feet when it comes to filing bankruptcy. Some folks ignore financial difficulties for a long time, and this can be disastrous. 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. As soon as you realize your debts far outweigh your income, call a bankruptcy lawyer to talk about what your choices are.
Financial Situation
Try your hardest to present a complete representation of your current financial situation. If you do not do so accurately, your petition could be dismissed, or at the very least delayed. It does not matter what you think of your financial situation, put the sum amount either way. This type of income could come from doing odd jobs, extra cars or outstanding loans.
Before petitioning, you need to know what the personal bankruptcy rules are first. There are many laws which govern bankruptcy; therefore, to protect your bankruptcy case, know the rules. If the regulations are not followed, your case may be subject to a dismissal order. Prior to filing any papers, learn about your rights and responsibilities when filing for personal bankruptcy. This can save you a lot of time and make the entire process easier.
If you are planning to file for bankruptcy in the immediate future, you should refrain from taking out cash advances via your credit cards. That is considered fraudulent behavior, and you can still have to pay the credit card back, bankruptcy or no.
When you file for bankruptcy, it doesn’t mean that you will lose your assets. Personal property can be kept. Things like jewelry, clothes, and electronics are included in this category. The personal items that you are allowed to keep will depend on your home state’s individual bankruptcy laws, your personal financial situation and the specific bankruptcy that you are filing for.
You should obtain a copy of your credit report from all three reporting agencies soon after you declare bankruptcy. Be sure the report is accurate with your closed credit accounts and discharged loans. If you see any mistakes, look into them immediately.
Include any and all debts you need eliminated in your paperwork. If you fail to list a debt, it may not make it into your discharge. It is up to you to ensure all things that need to be taken care of are written down, otherwise you will be stuck paying on things that weren’t discharged.
As you read in the beginning of this article, bankruptcy is not something anyone looks forward to. The initial process might be difficult and draining, but there’s something special waiting on the other side. Bankruptcy is not the end; by applying some or all of the tips in this article, you will make the process much smoother and your financial recovery that much faster.
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