The economy is still weak today. People carry more debt and find it harder to stay fully employed when the economy is this bad. Rising personal debt leads, in many cases, to increased bankruptcy filings. For anyone who is facing the threat of bankruptcy, the advice in this article can help you deal with the situation more effectively.
It’s not uncommon to learn soon after bankruptcy that you are unable to get an unsecured credit card easily. If you find yourself in this situation, you may want to think about getting a secured card or two. This will demonstrate that you’re seriously trying to restore your credit. After using a secured card for a certain amount of time, you might be offered an unsecured card once again.
You should not have to pay for an initial legal consultation, and such meetings are great opportunities to ask lots of questions. Most lawyers will meet with you for free and give you helpful advice, so meet with several. You should make a final decision only once all of the questions or concerns are sufficiently attended to. You don’t need to decide what to do right away. This offers you the opportunity to speak with other attorneys.
Familiarize yourself with the bankruptcy code before you file. These kinds of laws are constantly changing and it is important that you are aware of these changes, so that you can learn how to properly file for bankruptcy. To stay up-to-date on these laws, check out your state’s government website.
Many bankruptcy attorneys offer the first consultation with no charge, so consult with several before deciding on one. Make sure that you meet with an actual lawyer and not an assistant or paralegal, as these people are not allowed to provide legal advice. Comparing different lawyers makes it possible to find one with whom you work well.
Remember to only file for bankruptcy if you need to. You might be better off consolidating your debt or availing yourself of some other remedy. Filling for bankruptcy could be a long and stressful process. Remember that your credit will be affected by the mark of personal bankruptcy for a long time. Because of this, you need to think of bankruptcy as a nuclear option; that is, a last resort.
If you can afford to pay your bills, bankruptcy is not a wise option. Filing for bankruptcy can really damage your credit in the long run, by staying on your report for up to ten years.
Speak with your attorney about ways you can keep your car. In many cases, you can reduce your payment by filing a Chapter 7 petition. There are a few requirements that you have to meet to be eligible, though. You have to have bought the car more than 2.5 years ago, your loan’s interest rate needs to be over a certain amount, and your employment history has to be good.
Even if you are involved with Chapter 13 bankruptcy, it is still possible to get a mortgage or an automobile loan. But, it could be harder. Your trustee must approve any new loans. To show that you are responsible and prepared for the undertaking of a new loan, flesh out a full budget. You should also be prepared to explain why you need to purchase the item.
The economy is rebounding slowly, but there are still people who can’t find employment that pays a living wage. There are some things that can be done to prevent filing for personal bankruptcy even for those who have no steady income. Bankruptcy can be a difficult journey; however, the process can be made easier by learning the aforementioned information. Let the force be with you.
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