The path to bankruptcy is not normally a happy one, but your life can improve once the filing has occurred. The main point is to start over financially. Keep reading to see how bankruptcy can actually give you a new lease on life, rather than function as a permanent financial albatross.
Make sure you’ve exhausted all other options prior to declaring bankruptcy. Avail yourself of other options, including consumer credit counseling, if they are appropriate for your situation. Bankruptcy leaves a permanent mark on your credit history, so before you take such a large step, you want to exhaust all other options so that the future effects on your credit history are as minimal as possible.
If you are going through a bankruptcy do not fall victim to guilt and pay off debts that you do not need to pay. You should not use your retirement savings unless the situation calls for it. Although it is quite normal to use some of your savings, ensure that you leave enough in your account for emergencies.
Prior to putting in the bankruptcy paperwork, determine what assets are protected from seizure. The Bankruptcy Code provides a listing of the various asset types that are not included in the bankruptcy process. Be well prepared for bankruptcy by reviewing this list. It will tell you whether are not the things you value most are subject to seizure. If you are not aware of the rules, you could be setting yourself up for a lot of stress when your most important possessions are taken in the bankruptcy.
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. Your bankruptcy lawyer has to know every detail of your finances, whether bad or good. Divulge all of your information so that you and your lawyer can devise the best strategy for dealing with your situation.
Chapter 13
Consider Chapter 13 bankruptcy, if you chose to file. If you have less than a quarter of a million dollars in debt that is unsecured and a regular income, you are eligible to file a Chapter 13. That kind of bankruptcy allows you to hold on to your personal things and real estate while repaying your debts with a plan to consolidate your debt. Typically, any plan you develop will last around 3-5 years. Afterwards, any remaining unsecured debts will be discharged. However, if you miss even one payment, the court will dismiss your entire case.
Make time to visit with family and friends during the bankruptcy process. Going through a bankruptcy can be an excruciating experience. It can take a long time, take a great emotional toll and cause people to feel embarrassed and defeated. It can be hard to face the world while the bankruptcy process is taking place. However, self imposed isolation will only make you feel even worse about the process and could even lead to depression. So, it is critical that you keep spending time with the ones you love, regardless of the current financial situation.
If you are making more money than you owe, bankruptcy should not even be an option. It can seem like bankruptcy can be an easy way to avoid paying back your debts, however it leaves a serious mark in your credit report that can last between seven and ten years.
As said previously, a situation leading to bankruptcy can be upsetting. However, once this chapter is written it is done and you can begin to start fresh. 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.
This is a limited-time offer. We are not able to guarantee availability if you wait!
