Have you found yourself in a tight financial spot, and feel that bankruptcy is your only way out? Understand that you are not the only one. There are a lot of people who have turned to bankruptcy as the solution to their financial problems. The piece that follows includes useful ideas for ensuring that the bankruptcy process goes as smoothly as possible.
Lots of people have to claim bankruptcy when their bills are larger than their income. If you are in this position, you need to be familiar with the laws in your area. Most states differ in their laws governing bankruptcy. Some states protect your home, and others do not. You should be aware of local bankruptcy laws before filing.
Never shirk on the truth in your petition for bankruptcy. Don’t hide income or assets from your lawyer or the bankruptcy trustee or you may find yourself in legal trouble.
Credit Card
The best way to build your credit up after a bankruptcy is making all your payments on time. If so, apply for a secured credit card. By doing this, you will be letting people know that you want to fix your credit score. Then, in time, it may be possible for you to obtain an unsecured credit card.
Try to find a bankruptcy attorney who is personally recommended, rather than off the Internet, or out of the yellow pages. There are lots of unsavory companies and lawyers out there who prey on people who are in desperate straits. It is up to you to find someone that is trustworthy and can make the process go smoothly.
It is important to list all your assets and liabilities during the bankruptcy proceeding. Failure to do so will only cause you problems in the end. 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. Put everything out on the table and craft a wise plan for handling the situation the best you can.
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. Choose to file only if your lawyer has convinced you that this is the best decision. After your consultation, take your time to make your decision. So you have sufficient time to speak with a number of lawyers.
Chapter 13
Before filing for bankruptcy, determine whether Chapter 13 or Chapter 7 is appropriate for your financial situation. Under Chapter 7 type bankruptcy, all debts are forgiven. With very few exceptions, the connections between you and your creditors will be severed. If however you enter Chapter 13, you will go into a five year repayment program prior to your debts dissolving entirely. It is important that you understand the differences between the different types of bankruptcy, so that you can decide which option is best for you.
After your initial filing, take time to enjoy yourself a bit and get your mind off of it. A lot of debtors usually get stressed when they file. This stress could morph into clinical depression, if you fail to adequately address the problem. You are getting a fresh start, and things will get better.
If you are going to file for bankruptcy make sure you are prompt. For some people, they tend to ignore their poor financial situation and just wishing it away, but that is only putting you in more danger. It is too easy for debt to mount up and become uncontrollable, which could lead to loss of assets or wages. As soon as you know that you are too far over your head, make the move to call an attorney skilled in bankruptcy court, to weigh your options.
As you can probably see, you are not alone in needing to file for bankruptcy protection. Unlike the uninformed masses, however, you took the time to read this article, so you are more informed. The tips in this article should give you a good head start on your bankruptcy filing.
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