Bankruptcy is a tough decision for people to make, but in many situations, it is the correct choice. The more you educate and prepare yourself for the bankruptcy process, the better prepared you will be to handle it. Read on for knowledge and wisdom passed on from those who have gone through bankruptcy themselves.
A key tip for those filing a personal bankruptcy petition is to always be completely honest in all documentation. Don’t hide income or assets from your lawyer or the bankruptcy trustee or you may find yourself in legal trouble.
You might find it difficult to obtain an unsecured credit card or line after emerging from bankruptcy. If this happens, instead you should turn your attention to secured credit cards. When you do this, it shows your determination to fix your credit history. After some time passes they may be willing to offer you unsecured credit.
If you aren’t totally honest about your assets when filing a bankruptcy petition, you could get into serious trouble. Good or bad, you must tell your bankruptcy attorney everything about your financial situation. Keeping secrets or trying to outsmart everyone is not a wise move.
Free Consultations
Find a bankruptcy attorney who offers free consultations, and ask lots of questions. Free consultations are standard practice among bankruptcy lawyers, so interview multiple candidates before making a final decision. The lawyer who properly answers your questions is the one you should hire. It is not necessary to decide immediately after your consultation. If you’re unsure, don’t hesitate to talk to multiple bankruptcy lawyers.
Be sure to hire an attorney before you embark upon filing for personal bankruptcy. It is unlikely that you will be able to comprehend all the various rules and regulations involved in bankruptcy law. A personal bankruptcy attorney can help and guide you along through the bankruptcy process.
Before you decide to declare bankruptcy, make sure that a less-drastic solution isn’t more appropriate. For example, there are credit counseling services that can help you to deal with smaller amounts of debt. Also, you could try to get your payments lowered on your own. If you decide to do this, get a copy of anything you agree to.
Remember to understand the differences between Chapter 7 bankruptcy and Chapter 13 bankruptcy. All debt will be eliminated with Chapter 7. You will be removed from any contracts you have with your creditors. If you choose to file for Chapter 12 bankruptcy, you’ll be put into a 60-month plan for repaying your debts before they’re eliminated. You must know about the different bankruptcy types, and how each can affect you.
Bankruptcy Filing
If you are making more money than you owe, bankruptcy should not even be an option. Remember that the record of your personal bankruptcy filing will be discernible on the report of your credit for as many as 10 years. For this reason, bankruptcy filing should not be taken lightly.
Once you have completed the bankruptcy filing, you should take time to do something you enjoy. Bankruptcy is a stressful process: you will have to go over your bad financial decisions and perhaps feel ashamed about your decision. You do not want to have to deal with depression in addition to your financial troubles, so you should take steps to keep yourself happy. Once your petition is in the hands of the judge, all you can do is wait.
Do not use credit cards for cash advances prior to filing a bankruptcy petition, as it can affect the dischargeability of the debt. This is illegal. It’s fraud, and you can still be responsible for paying it back even after declaring bankruptcy.
Before you file for bankruptcy, be sure you know how to properly repay your debts. Bankruptcy rules generally outlaw repayment of creditors in the 90 days leading up to a bankruptcy filing, a period that is extended to one year when it comes to payments made to family members. Before making any final decision concerning your finances, you should be educated on the rules of bankruptcy.
Realize that bankruptcy may be better for you when it comes to your credit. Continuing to miss your payments can be really bad on your debt. While bankruptcy may appear in your credit report, you could surely try to fix your damaged credit. The main benefit to filing for bankruptcy is the chance at a new start.
Write down every one of your debts. Once you have an idea of who you owe and how much you owe, you can figure out if bankruptcy is really an option for you or not. Search your financial records to be certain that every amount on your list is exactly correct. Any inaccuracies or discrepancies can lead to a dismissal of your petition.
Nobody wants to file bankruptcy, but some people cannot avoid it. After reading this article, you now know how people who have actually experienced bankruptcy got through the process. Making time to educate yourself from anyone who has gone through this before can make your personal trip through this less stressful.
This is a limited-time offer. We are not able to guarantee availability if you wait!
