Being faced with the decision to file for bankruptcy can put you under a lot of stress. When you’re constrained financially, your options become limited, in general. Even without perfect credit, you can still get the loans you need.
Always be honest with the information you give about your finances. Do not try to shield some assets or income from your creditors. This can get you in serious trouble and prevent your bankruptcy petition altogether.
After a bankruptcy, you may not be able to receive any credit cards. If this happens to you, think about applying for a couple of secured credit cards. This will be a demonstration of the seriousness with which you view rebuilding your credit rating. In time, you might be granted unsecured credit again.
Do some research to find out which assets you could lose by filing for personal bankruptcy. To find an itemized list detailing assets exempt from bankruptcy, find the Bankruptcy Code. It is important to be aware of this list so you will know what assets are saved. You wouldn’t want to unexpectedly lose any possessions you treasure.
Be completely honest whenever you file for personal bankruptcy. Hiding any asset or liability is a risk that will bite you in the end. Wherever you file, that court has to be made aware of all details regarding your finances, positive and negative. Put everything out on the table and craft a wise plan for handling the situation the best you can.
There is hope! Many times you can get repossess property back once bankruptcy has been filed. You should be able to get your possessions back if they have been taken away from you within 90 days before you filed for bankruptcy. Consult with a lawyer that can walk you through the filing process.
See if there is an alternative you can use before declaring bankruptcy. For example, you may want to consider a credit counseling plan if you have small debts. Sometimes you can negotiate a reduced payment, though you must strive to get it all in writing.
Chapter 13 Bankruptcy
Look into filing Chapter 13 bankruptcy. If you are receiving money on a regular basis and your unsecured debt is under $250,000, you may be able to file Chapter 13 bankruptcy. That kind of bankruptcy allows you to hold on to your personal things and real estate while repaying your debts with a plan to consolidate your debt. The plan is usually for a term of three to five years, and a discharge will be granted at the end of that term. Remember that you must make every payment. Missing even one could cause the court to dismiss your case.
Don’t automatically assume that bankruptcy is your only option. Ask a bankruptcy lawyer if a debt repayment plan or rate reduction would be of benefit. If foreclosure is imminent, see if your loan can be altered at all through a modification plan. There are a lot of ways that your lender can assist you, such as reducing interest rates, eliminating late fees, or extending the term of your loan. Most creditors will be willing to work out an option to avoid not getting paid at all.
Before filing for bankruptcy, you must be educated on the specifics of all bankruptcy laws. For example, it is forbidden for an individual to transfer any assets away from the name of the filer within the twelve months preceding filing. It is also illegal for someone who files for bankruptcy to drastically increase their debts on credit cards immediately before filing.
No matter if you’ve filed for bankruptcy, this will not forever limit your life. When creditors can look at your credit report and see that you have made an effort, over time, to pay on time, getting credit will become easier again. So start saving and see how much of a change it makes when people view you the next time you go in for a car or home loan.
This is a limited-time offer. We are not able to guarantee availability if you wait!
