Are you having financial problems and think bankruptcy is the lone choice you have? Do not worry, because you are not the only one. People from all walks of life have declared bankruptcy to solve their financial problems. The tips in this article will show you how to make your bankruptcy work for you.
Secured Card
Getting unsecured credit post-bankruptcy will likely be difficult. If this is so, apply for a secured card or two. 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. If you pay your secured card off on time, you’ll eventually find that companies will start offering you unsecured credit.
Find out what you exemptions are prior to filing bankruptcy. The Bankruptcy Code provides a listing of the various asset types that are not included in the bankruptcy process. It is vital that you know the things on this list prior to filing for bankruptcy, in order to determine which of your possessions will be taken away. It is important to know what types of possessions may be taken away before they actually are seized.
Take the time to find a simpler solution to your financial issues, before filing for bankruptcy. For example, consumer credit counseling services can often help you figure out a workable repayment plan with creditors. It may also be possible to get lower payments, but if you do, be sure to obtain records for any consensual debt modifications.
Understand the differences between Chapter 7 and Chapter 13 bankruptcy. Investigate the benefits and pitfalls of both. Online resources may be able to provide all the information you need. Do not hesitate to have your lawyer explain any details that seem difficult to grasp. This will help ensure you make the right choice when filing.
If you make more money than you need to pay your bills, you should not file for personal bankruptcy. Though bankruptcy may appear to be a good way to escape your debts, it does affect your credit negatively for a fairly long time.
If you are in the midst of a Chapter 13 bankruptcy, it is possible to apply for certain loans. This is harder. Your bankruptcy custodian will need to approve the loan. When meeting with the trustee, bring a budget which shows that you will be able to afford the payment on the loan you are trying to get. You will need to be able to explain why the purchase is necessary.
Debt Collectors
When you file for bankruptcy, you should be very aware of your rights. There are unscrupulous debt collectors who may suggest that your obligations cannot be included in a bankruptcy. Only a small number of debts are not dischargeable, including student loans and child support obligations. If you are speaking to debt collectors about another type of debt and they tell you it cannot be discharged, check your local regulations. You can report the collectors to your state attorney general if they are lying about this.
Chose the proper moment to make your move. Filing at the right time can make things go much more smoothly. In some situations it is best to file as soon as possible, but in other situations it is best to wait until after you’ve gotten through the worst of it. Discuss your particular situation with your bankruptcy attorney to determine the best time to file.
As mentioned, you are not alone in needing to file for bankruptcy. However, thanks to the piece above, you are better prepared to face the challenges that may come your way. The tips in the article above will help you get through your bankruptcy.
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