Embarking on a personal bankruptcy filing can be quite complicated. There are different kinds of bankruptcy you can file, and the kind you select depends on your individual financial picture and what types of debt you have. Prior to filing, there is a lot you need to know. The following article contains valuable information to help you make that decision.
Credit Cards
It’s not uncommon to learn soon after bankruptcy that you are unable to get an unsecured credit card easily. If this happens, instead you should turn your attention to secured credit cards. If you pay what you owe back promptly at all times, you can show that you are taking steps to be responsible about your payments and credit rating. After a certain time, you will then be able to acquire credit cards that are unsecured.
Determine which of assets are safe from seizure and which are not before filing for personal bankruptcy. The Bankruptcy Code lists assets considered exempt from being affected by bankruptcy. Make sure that you carefully look over this list prior to filing to discover if your valuable assets will be seized. If you don’t read it, you could have nasty surprises pop up later due to your prized possessions being seized.
Don’t ever pay a bankruptcy attorney for a consultation, and ask a lot of questions. You can meet with a few lawyers before deciding on one. Most lawyers provide a free initial consultation. You should make a final decision only once all of the questions or concerns are sufficiently attended to. After the consultation, you are not immediately required to come up with a decision. You could even go to different lawyers for advice.
If bankruptcy is an option for you, secure the services of an attorney. Having a lawyer on your side is the best way to avoid mistakes and bad decisions. A qualified bankruptcy attorney will guide you through the steps and help you do everything properly.
It is imperative that you know for sure that bankruptcy is the option you need. It may be that all you really need to do is consolidate some of your debts. Going through the bankruptcy process is a long drawn process which at times can be incredibly stressful. Your future credit will be affected by these actions. You only want to file for bankruptcy after you have exhausted your other options for dealing with your debts.
Avoid filing for bankruptcy if you make more money than your monthly bills. Although bankruptcy might seem to be an easy way of being able to pay for your debts, you must remember that it is something that will remain roughly about 7 to 10 years in your credit report.
Chapter 7
Before you make the decision to file Chapter 7 personal bankruptcy, take time to think about anyone it could affect. When filing Chapter 7, you are not legally responsible for the debts in your name. Your creditors can then come after your co-debtor for full repayment of the debt.
Banish the word “shame” from your vocabulary before you file for bankruptcy. The bankruptcy process makes people feel guilty and ashamed. But, there is nothing positive about feeling this way and it can actually affect your mental state. Keep your mindset positive while you work through financial troubles such as bankruptcy to reduce stress and have an easier time coping.
Filing for bankruptcy can cause stress. To combat these problems, look into securing a good lawyer. Don’t think that the highest priced attorney is the best. Hire the best attorney you can afford, not the one who charges the most. Get referrals from people you know who have been in your situation, check with the better business bureau and use free consultations to interview several people. Try attending a hearing to find out how bankruptcy attorneys handle the situation.
Consider your options before deciding to file personal bankruptcy. Think about credit counseling, for example. There are a number of companies that will assist you, many of which are non-profit. They will negotiate with your creditors in order to reduce your payments and interest rates. They act as intermediaries between you and your creditors; you pay the counselors and they pay the companies to which you owe money.
You likely now understand that bankruptcy is something that should be undertaken carefully and with great deliberation. After weighing all of your options, if you conclude that bankruptcy is the best option for your particular situation, be sure to hire a competent attorney. Follow the advice given in this article to get through this rough time and move on to a more secure financial future.
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