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. The point of bankruptcy is to have a clean slate and a fresh start. Learn how to make bankruptcy work for you, instead of allowing it to devastate your life.
Before you file for bankruptcy, carefully consider if it is the right option for you. You can find services like counseling for credit that consumers can use. Before you take the drastic move of filling for bankruptcy and living with a long lasting bad credit history, make sure to consider using another way that may not be as damaging to your credit.
When it soaks in that filing for personal bankruptcy, don’t use all of your retirement funds, or all of your savings to resolve insolvency or pay creditors. Don’t touch retirement accounts unless you don’t have a choice. If you have to use a portion of your savings, make sure that you save some to ensure that you are financially secure in the future.
Instead of getting your lawyer from the yellow pages or on the Internet, try your hardest to find one with a personal recommendation. You want your bankruptcy to go smoothly, and the Internet is rife with fly-by-night companies whose only goal is to prey upon the financially desperate.
When filing for bankruptcy it is crucial that you are candid and not concealing any liabilities or assets, as it will only show up in the future. All of your financial information, be it positive or negative, must be disclosed to those in charge of filing your case. They need to know it all. Don’t withhold information, and create a smart way of coping with the reality of the situation.
Before you file for personal bankruptcy, be sure that you are cognizant of all current laws. If you want to file for bankruptcy successfully, it’s important to review the latest applicable laws. They tend to change frequently. A qualified bankruptcy attorney is the best source for the latest information regarding the laws in your state.
There are differences between Chapter 13 bankruptcy and Chapter 7; be sure to familiarize yourself with both. Take the time to find out about each one online, and look at the advantages and disadvantages of each. Engage your attorney in a conversation about each type, and ask him to answer any questions you may have before deciding which kind is right for you.
Being with the people who you love should be still be a top priority. Bankruptcy can take a toll on you. It’s generally stressful, lengthy and can make people feel guilty, ashamed, and unworthy. Lots of people think they need to hide from everyone until this is all done. This is not a good idea because staying alone could cause serious problems with depression. Make it a point to catch yourself if you feel yourself pulling away from others. Tell others that you would like to do some enjoyable things together while you go through bankruptcy process, then do it.
Repayment Plan
Investigate other alternatives before resorting to bankruptcy. You might be able to address your debts by arranging a repayment plan or a reduction in your interest rates. Get professional advice on these matters from a bankruptcy lawyer. Loan modification plans can help if you are dealing with foreclosure. These plans allow you a longer pay off period by extending the term of the loan, reducing the rate of interest or forgiving late fees. At the end of the day, creditors want to get paid, and sometimes a debt repayment plan is preferable to dealing with a bankrupt debtor.
After your initial filing, take time to enjoy yourself a bit and get your mind off of it. Filing for personal bankruptcy can be very stressful for the debtor. The stress of dealing with bankruptcy could cause you to fall into a depression, unless you take steps to take care of yourself. Once the process is complete your life will improve.
It is important to understand your rights when you file for bankruptcy. Collectors may try to convince you that your debt can’t be discharged. However, there are few debts that cannot be eliminated, like student loans and child support payments. If the bill collector is trying to deceive you, then report that company to your local attorney general’s office.
As stated in the above article, anytime someone is forced into bankruptcy is never a happy situation. Use what you have learned and take responsibility for your financial health – turn your life around. In fact, if you apply the ideas and advice given in this article, you can truly make bankruptcy a turning point in your life towards better days.
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