Mention of the word, “bankruptcy” is enough to terrify many. Similarly, mounting debt and the inability to sufficiently support oneself and family is another very real fear. If you are in a situation that may require a bankruptcy filing, don’t let fear overcome you. Read this article and learn valuable tips and advice to make this scary situation much more manageable.
Before filing for personal bankruptcy, make sure you are doing the right thing. You can find services like counseling for credit that consumers can use. Bankruptcy will leave a permanent scar on your credit report and before you take this huge step, you should search through every available option first, to help try and limit the damage to your credit.
Don’t be afraid to remind your attorney of certain details in your case. You cannot expect your lawyer to remember every important detail without some reminder from you. Be as open as you can be to make sure your bankruptcy goes as well as possible.
Credit Card
Be warned that after your bankruptcy, you may stand out as a leper to credit institutions. You may be unable to get a simple credit card. If you find that to be the situation, consider requesting secured cards. Using a secured card not only helps to rebuild your credit, but it also keeps you from going more in debt with credit card bills. After a time, you are going to be able to have unsecured credit cards too.
Don’t hide assets or liabilities when filing for bankruptcy. Whoever provides your legal consultation must be privy to all of your financial information. Do not leave anything out and come up with smart plan to manage the situation you are dealing with.
Don’t give up. Filing for personal bankruptcy may possibly enable you to reclaim your personal property that have been repossessed, like your car, electronics and jewelry items. 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. Get the advice of a qualified attorney who can advise you about ways to accomplish this.
Don’t pay to for an initial consultation with a bankruptcy attorney, and thoroughly question each candidate. Most lawyers provide a consultation for free, so consult with many of them before picking which one you want to hire. Only make a decision after you have met with several attorneys and all of your concerns and questions have been addressed. You can think about your decision before making a commitment. That gives you the chance to speak to a number of lawyers.
Chapter 13
Find out more about Chapter 13. If your source of income is regular and your unsecured debt is less than a quarter million, Chapter 13 bankruptcy is something you are able to file for. Filing for this type of debt will ensure that you can hold onto your real estate and personal property, and will let you develop a consolidation plan to pay off your debts. The window for Chapter 13 repayments is typically 3-5 years. At the end of this time, any unsecured debt is discharged. Remember that if you fail to make any of the payments on time, the court may dismiss your case.
Avoid filing for bankruptcy if you make more money than your monthly bills. While bankruptcy may seem like an easy way out of having to pay back all of the debt that you owe, it is a stain that will remain on your credit report for seven to ten years.
If you filed for Chapter 13 bankruptcy, you can still get a mortgage or a car loan. It is a little more difficult, though. You need to contact your trustee so you can get approved for a new loan. Draft a personal budget to show that you will be able to repay your new loan. You also have to prepare yourself to explain the reasons you need to buy the item.
If you are forced to file for bankruptcy, you should avoid being ashamed of yourself. Feelings of low self-worth, shame and guilt are common for those who have come to the point where bankruptcy is their only option. Do not let these negative feelings influence your decision. Keeping an optimistic view as you deal with your financial woes is the most productive way of dealing with a bankruptcy.
Bankruptcy is a hard thing to experience and it could create both emotional and mental stress. To help yourself deal with this stressful situation, make sure you hire a legitimate attorney. Don’t make your choice to retain a particular lawyer simply because they are the cheapest. Choosing a lawyer should be based on finding one with a proven track record who can give you the help that you need. Get referred from others who’ve been in the same situation, check the BBB, and interview several people through free consultations. You could also sneak into court to watch a real live bankruptcy proceeding to see how that attorney handles the situation.
Consider all of your options before filing for bankruptcy. Have you been through credit counseling first? There are a lot of organizations that are non-profits and can assist you. They will negotiate with your creditors in order to reduce your payments and interest rates. Often, they make the payments to your creditors, and you make your payment to them.
People fear bankruptcy with good reason. It is a pretty daunting process to go through. Even though you may be afraid, the following article can remove some of the mystery for you. Take this advice to heart, and do everything possible to improve your situation.
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