Anger, anguish, frustration, and sadness are all emotions felt by those who experience personal bankruptcy. Those who file bankruptcy worry they will be stuck and unable to pay their bills and still live their lives everyday. As the following article explains, options do exist for those facing financial difficulty.
When you feel certain that you must file for personal bankruptcy, refrain from squandering your life savings to pay off unsecured debt. Do not tap retirement accounts unless there is no other alternative. You may need to use some of your savings; however, you should not use all of your savings. Remember that you must safeguard your future financial security.
Don’t hesitate to give your attorney a heads-up about something she has missed. Chances are that you may have forgotten to tell them about certain specifics that may be important to your filing. Be as open as you can be to make sure your bankruptcy goes as well as possible.
Unsecured Credit
It’s not uncommon to learn soon after bankruptcy that you are unable to get an unsecured credit card easily. If this is so, apply for a secured card or two. This demonstrates to creditors that you are making a good faith effort to repair your credit. Eventually, you could be able to obtain unsecured credit.
Prior to filing your bankruptcy petition, go over the list of assets that cannot be seized by creditors. The Bankruptcy Code contains a list of various assets that are excluded from bankruptcy. You can determine exactly which of your possessions are at risk by consulting this list before you file. If you fail to do so, things could get ugly.
Don’t pay for the consultation with a lawyer who practices bankruptcy law; ask a lot of questions. You can meet with a few lawyers before deciding on one. Most lawyers provide a free initial consultation. Choose to file only if your lawyer has convinced you that this is the best decision. There is no need to feel rushed to decide to file after you talk with your bankruptcy lawyer. This allows you time to speak with numerous lawyers.
Be sure you know what the difference between Chapter 13 and Chapter 7 bankruptcy is. Do some research about these options so you can choose the best one. Once you have done your own research, be sure to review your findings with your lawyer, who is the expert. This way, you can be sure of making a well informed choice.
Do not let bankruptcy consume you, make sure you make time for your friends and family. The process for bankruptcy can be hard. At the end of the process, many people are left with feelings of shame and worthlessness. Lots of people think they need to hide from everyone until this is all done. Isolating yourself from your loved ones can lead to feelings of depression. Therefore, meet this challenge head on and surround yourself with caring family members so you can get through this difficult financial situation.
Make a list of all your debts before filing. If you forget to add these, your petition could be delayed or dismissed. You might think something is insignificant, but you should add it anyway. When it comes to the types of things you might not be thinking about adding, just think about any automobiles you have, any money under the table you’re making, etc.
If you plan to pay debts off before you file for bankruptcy, be careful. The laws surrounding bankruptcy often prohibit paying back certain creditors up to ninety days prior to filing, and family members up to a year! Know what the laws are prior to making any payments.
Although it is tempting to toss out the idea of ever owning credit cards again, think again. The fallacy in this thinking is that credit is needed to improve your credit history again. You have to reestablish your credit once you hurt it, this way you can still position yourself to take out things, such as home or car loans, in the future. Start by using just one credit card, and propel your credit in a positive direction.
Choose your personal bankruptcy lawyer wisely. Because of the increase in bankruptcy filings, this field attracts a lot of newer, inexperienced attorneys. Ensure that the attorney you choose is experienced and has the proper license. A basic Internet search can turn up client ratings and relevant background information.
About two months after you’ve done bankruptcy, you can get copies of your various credit reports from the three agencies. Check to make sure your credit report accurately reflects your recently discharged debts. Follow up on any discrepancies right away, so that you can begin repairing your credit.
If divorce is in your future, perhaps you should make an effort to resolve the situation before finances become a problem. Divorcing will only complicate your financial situation. You may find that both you and your spouse must file for bankruptcy following divorce. Reconsidering divorce is usually the best option in any case.
There are lawyers who maintain a telephone service meant to field calls from creditors attempting to contact debtors who have filed for bankruptcy. Creditors can receive confirmation that you are indeed filing for bankruptcy protection from them if they give that number a call. They will stop calling you at this point, and you will be able to answer your phone without fear.
Check over everything for accuracy. Even if you have a lawyer to do that work for you, you are the one who has to make sure your information is correct. Bear in mind that a lawyer deals with many cases and there is always a chance of a screw up. This is why it’s vitally important for you to personally double-check the information that goes onto your bankruptcy paperwork.
Now that you’ve reached the end of this article, you should see that bankruptcy doesn’t mean leading an unhappy life. Bankruptcy is a serious matter, but it can be managed. Keep the advice here in mind so that you can work toward getting back on your feet!
This is a limited-time offer. We are not able to guarantee availability if you wait!
