Bankruptcy is stressful and unpleasant, but remember that it is also a solution and a light for the future of your finances. On the one hand, you have to go through all your finances and deal with many people going through your financial life. On the other, you get to enjoy the peace that comes when the bill collectors stop calling you. The following are some useful ideas for facilitating a smooth bankruptcy.
Prior to filing for bankruptcy, be sure you have investigated all of your alternatives. Debt advisors are one of the many other avenues you can consider. Bankruptcy stays on your credit for a whole decade, so if there are less drastic options that will solve your credit problems, it is in your best interest to make use of them.
A key tip for those filing a personal bankruptcy petition is to always be completely honest in all documentation. You must avoid the temptation to conceal any valuables, money or other assets from the courts. If they find that you have lied, you may be faced with fines, penalties or the inability to file in the future.
The best way to build your credit up after a bankruptcy is making all your payments on time. If that is the case, you should try applying for one, or two secured cards. When you do this, it shows your determination to fix your credit history. After a while, you may be able to get unsecured credit again.
Although you can find many bankruptcy attorneys listed in your local Yellow Pages or online, it’s best if you can find one through the personal recommendation of a friend, family member or acquaintance. There are so many dime-a-dozen companies out there who make it a practice of preying on financial desperation. You need to make sure your bankruptcy goes smoothly, so find someone you know you can trust.
You should never give up. Filing a bankruptcy petition might facilitate the return of your property, including cards, electronics or other items that may have been repossessed. 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. Talk to your lawyer to find out how to go about properly filing a petition.
Bankruptcy is tricky and hiring a good lawyer will be a must. Filing for bankruptcy is a complicated procedure, and you may not be aware of all the ins and outs. An attorney will make sure that everything is being done correctly.
Familiarize yourself with any new law before you make the final step to filing for bankruptcy. If you want to file for bankruptcy successfully, it’s important to review the latest applicable laws. They tend to change frequently. To find out about these changes, you can look at your state’s legislation website or contact their office.
See if there is an alternative you can use before declaring bankruptcy. For example, if you only have a little bit of debt, you might be better off if you went through consumer credit counseling. It is also possible to do your own debt negotiations; however, be sure to get everything in writing.
Chapter 13
There are two types of personal bankruptcy: Chapter 7 and Chapter 13. Make sure you know what each entails so you can make the right choice. In Chapter 7 bankruptcy, your debts are all eliminated. You will be removed from any contracts you have with your creditors. A Chapter 13 filing involves a repayment plan, though. Typically, you will make a partial payment against your debts over the next 60 months before the balance of the debts is lifted. To make the wisest choice, you will need to understand the consequences of each of these two options.
Make sure that you really need to file for bankruptcy. Perhaps just consolidating some of your existing debt, could make them easier to manage. Bankruptcy is a long process that can be stressful. Having a bankruptcy on your record will hinder your ability to get credit in the future. Because of this, filing for bankruptcy should only be used as a last resort.
Speak with an attorney about any fears you have about losing your car. You may even be able to get your monthly payment reduced. Chapter seven bankruptcy often provides for the lowering of payments. But, your car has to have been bought at least 910 days before you file. Also, it must come from a high interest loan and you have to have been consistently working.
Bankruptcy has several pros and cons. Never forget that being well-informed is always the key to a successful bankruptcy, no matter what your reasons for filing are. The advice found below can assist you in dealing with bankruptcy. Put them to use and see how smooth the process can be and how much happier you will feel!
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