Anytime you are faced with the prospects of filing for bankruptcy, it is not a good situation, but there is some light at the end of the tunnel when you get through this process. The bankruptcy laws allow you to have a second chance at building your credit and meeting all your financial responsibilities. Continue to read this article to learn how good a bankruptcy can end up being for your life.
If you are faced with the choice of filing for bankruptcy or using your emergency fund or retirement accounts to pay creditors, opt to file for bankruptcy. Retirement funds should be avoided at all costs. Of course you will have to touch some of your savings to get through all of the hearings, but do not put out any money that you do not have to by law.
When you document your financial records, it is vital that you are 100% truthful in order to have a successful resolution to your bankruptcy process. Remember that if you hide your valuable assets or income from your bankruptcy trustee, you may risk a number of penalties and complications. Among these is the possibility that you could be blocked from ever filing again.
Unsecured Credit
You might find it difficult to obtain an unsecured credit card or line after emerging from bankruptcy. If this happens to you, think about applying for a couple of secured credit cards. By doing this, you will be letting people know that you want to fix your credit score. When you have done well with secured cards for a while, you should be able to obtain an unsecured credit card.
You may end up losing more than you bargained for when you file a bankruptcy claim, so be sure that you know just which assets may be taken before filing. There are several assets which are exempt from bankruptcy; therefore, consult the Bankruptcy code. Make sure to review the list before filing a claim so you know if your valuables will be subject to seizure. If you neglect this important step, you might be blindsided when a possession that is important to you is taken to repay creditors.
You may have heard bankruptcy referred to differently, either as Chapter 7 or Chapter 13. Learn the differences between the two before filing. If Chapter 7 is what you file, your debts will get eliminated entirely. You will be removed from any contracts you have with your creditors. Filing Chapter 13 differs by requiring you to agree to a 60 month plan to repay your debts before they are totally eliminated. When choosing the type of personal bankruptcy that is correct for you, it is very important that you know the differences.
Be sure you know what the difference between Chapter 13 and Chapter 7 bankruptcy is. Take the time to find out about each one online, and look at the advantages and disadvantages of each. If you have trouble understanding the wealth of information, talk to your lawyer so he or she can help you make an informed choice.
Do not forget to be around those you love. Bankruptcy proceedings can be extremely harsh. It’s generally stressful, lengthy and can make people feel guilty, ashamed, and unworthy. Many people decide to hide away from the world until the process is over. However, this isolation will just make you feel worse, and it could cause you to be depressed. So, it is critical that you spend what quality hours you can with loved ones, regardless of your financial circumstances.
Take some time after filing for bankruptcy to enjoy life. Many debtors stress-out during the time of filing. Depression and burn-out from pent of stress will do nothing to help your situation, so it is critical to let go a little. Once your petition is in the hands of the judge, all you can do is wait.
Filing bankruptcy under Chapter 13 means you can still get a loan for a car or a mortgage. This is harder. You will have to see your trustee and the approval for this new loan. Document your budget to prove that you’re going to be able to make the payments. You will also need to explain why it is necessary for you to take out the loan.
Bankruptcy Attorney
Filing for bankruptcy can cause stress. To have a reliable and trustworthy guide through the process, find a highly qualified attorney. Don’t hire based solely on cost. Quality is far more important than expense when it comes to a good bankruptcy attorney. Speak with trusted people, check the BBB and take advantage of the free bankruptcy attorney consultations. If you want to know more about a specific lawyer, attend a court proceeding and see how the attorney handles herself.
Include your entire financial information when you file for bankruptcy. If you don’t do this, your file could be delayed or dismissed. No sum is too small to be included; err on the side of caution and include everything. When it comes to the types of things you might not be thinking about adding, just think about any automobiles you have, any money under the table you’re making, etc.
As mentioned, the events that cause bankruptcy are not happy. On the other hand, the new beginning that bankruptcy offers can lead to a new life story. Bankruptcy is not the end. Follow the tips given here in order to make it a new beginning.
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