Although circumstances leading to bankruptcy may not be positive, life following bankruptcy can be. With a clean slate, it is possible to start over both financially and personally. Continue ahead to learn how you can smooth out the bankruptcy process so it’s not a financial disaster.
Prior to filing for bankruptcy, be sure you have investigated all of your alternatives. Avail yourself of other options, including consumer credit counseling, if they are appropriate for your situation. Before you take the drastic move of filling for bankruptcy and living with a long lasting bad credit history, make sure to consider using another way that may not be as damaging to your credit.
Try to find a bankruptcy attorney who is personally recommended, rather than off the Internet, or out of the yellow pages. There are lawyers out there who will take advantage of your financial state and not deal honestly with you. Make sure your filing process goes as well as possible by finding a trustworthy lawyer.
Research what assets are exempt from seizure before you decide to declare bankruptcy. You can find a listing of the asset types that are excluded from bankruptcy in the Bankruptcy Code. Prior to filing for bankruptcy, it is critical that you go over this list, so that you know if you can expect any of your most valuable possessions to be seized. While it might not be possible to protect a particularly beloved possession, at least you will know in advance whether or not you risk losing it.
Keep at it! If you file for bankruptcy, you might be able to reclaim certain property that has been repossessed, such as your car, electronics or jewelry. Filing for bankruptcy may allow you to regain ownership of recently repossessed property. Talk to a lawyer for help with the petition filing process.
Most bankruptcy lawyers give free consultation, so try to meet with these types of lawyers before deciding on hiring one. Talk to the lawyer and not his assistant, who may not be legally able to help you. By shopping lawyers, you will be more likely to find one that makes you comfortable about the process.
If you’re unsure, then you need to learn what a Chapter 7 bankruptcy can do for you, as opposed to what Chapter 13 does. Go to a reputable website and research the benefits and detriments of each type of bankruptcy. If you don’t understand the information you researched, consult with your attorney about the details before you decide which type of bankruptcy you want to file.
If your income exceeds your obligations, you should not seek bankruptcy protection. Although bankruptcy might seem to be an easy way of being able to pay for your debts, you must remember that it is something that will remain roughly about 7 to 10 years in your credit report.
You may want to see if you can get lower payments on your vehicle if you want to keep it. In many cases, Chapter 7 bankruptcy can lower your payments. The requirements are that your car purchase has to be greater than 910 days before filing, must have a loan that is high in interest, and must have a solid work history.
Chapter 7
If you have a co-debtor, consider the ramifications that filing a Chapter 7 bankruptcy will have. If you choose Chapter 7, you are no longer responsible for joint debts. However, the creditors could come after your co-signer and demand full payment for the debt.
It is still possible to get a mortgage or car loan, even if you are filing for Chapter 13 bankruptcy. This is harder. Normally, the trustee assigned to your bankruptcy must approve any new loan. You need to develop a budget and show that you will be able to afford the new payment. Also, you need to be ready to say why you’re going to need the item.
Before declaring bankruptcy, it is important to know your rights. It is not unusual for creditors to claim that their debt is not able to be discharged. There are only three main classes of debts that are non-dischargable: taxes, child support and student loans. If a debt collector tells you this false information, seek the advice of your bankruptcy attorney. You may also want to report the bill collector to the attorney general’s office.
As stated in the above article, anytime someone is forced into bankruptcy is never a happy situation. However, the story that gets written after bankruptcy does not have to be depressing too. Actually, by using the advice you’ve learned here, your story of hardship could have a happy ending after all!
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