There is hope for a better life after bankruptcy, no matter the unpleasantness that went before. Once you have completed the bankruptcy process you can begin anew with a clean slate. Read on for how to make the bankruptcy process be a rebirth instead of financial Armageddon.
A lot of people find themselves needing to file bankruptcy when they are unable to pay their bills. When you get into this situation yourself, your first step is to familiarize yourself with your local bankruptcy regulations. Laws differ from one state to the other. Some states protect your home, and others do not. Be sure to have some familiarity with the law in your jurisdiction.
Be sure you’re doing what’s right before you file for bankruptcy. It is possible to take advantage of other options, like consumer credit counseling. Bankruptcy will be on your credit report and affect your credit score for many years to come, so it is a decision that should not be taken lightly. Try to use it as a last resort.
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. Lying on your filing can cause dire consequences such as: delays, penalties, being prevented from re-filing, or even jail time.
It is important to remind your lawyer of any details that may be important to your case. Just because you have told him something of importance that he will remember it. All information submitted to the court with your signature needs to be double checked.
After you have declared bankruptcy, you may have a hard time being approved for unsecured credit. Since it is important that you work to rebuild your credit, you should instead think about applying for a secured card. This will demonstrate that you’re seriously trying to restore your credit. In time, it may be possible for you to obtain unsecured cards.
When a bankruptcy is imminent, retain a lawyer immediately. Personal bankruptcy is quite complex, and it is entirely possible that you will not be able to familiarize yourself with all the laws and processes. A qualified bankruptcy attorney will guide you through the steps and help you do everything properly.
Before declaring bankruptcy, be sure you’ve weighed other options. 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.
It is important to know how Chapter 7 filings differ from Chapter 13 filings. By researching each type, you can begin to understand which method is right for you. Before making any decisions, discuss the information you have learned with your lawyer.
It is still possible to get a mortgage or car loan, even if you are filing for Chapter 13 bankruptcy. However, it can be more difficult. You will need to go through various hoops in order to be approved for any new loan type. You need to show them why and how you can handle paying back the new loan. Also, you need to be ready to say why you’re going to need the item.
Make sure you act at an appropriate time. When it comes to filing for bankruptcy, your timing is important. While there are times that it is ideal to file soon, there are other times in which you should wait. Speak with a bankruptcy lawyer about when the best time is to file for your specific needs.
As previously stated, the reasons for filing for bankruptcy are not generally a happy fairy tale. But, just because you ended up in this dark place does not mean that the sun cannot shine once more. 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.
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