Facing bankruptcy makes life difficult. Bankruptcy is an acceptable option if you are in a bad financial situation and have very limited options. But remember that there is always a way out of a situation you are in, so do not let bankruptcy scare you.
Before making the decision to file for bankruptcy, be sure to do some research and learn all you can about the subject. There are many websites available that offer this information. The United States Department of Justice and National Association for Consumer Bankruptcy Attorneys provide excellent information. The more information you have, the more confident you can be about any decision you make and you will know that you are doing the best thing possible for your situation.
You might experience trouble with getting unsecured credit after filing for bankruptcy. If that is the case, you should try applying for one, or two secured cards. Using a secured card not only helps to rebuild your credit, but it also keeps you from going more in debt with credit card bills. In time, it may be possible for you to obtain unsecured cards.
Don’t ever pay a bankruptcy attorney for a consultation, and ask a lot of questions. When you arrive at a consultation ask plenty of questions. You should also seek free consultations from several attorneys prior to choosing one. Make a decision when all your concerns and questions have been addressed well by one lawyer in particular. You need not decide right away. Be sure to talk with a number of lawyers, and compare the information you receive.
State Legislature
Familiarize yourself with any new law before you make the final step to filing for bankruptcy. These laws change regularly and you should stay up-to-date so you can make the best decisions. Review the state legislature web site or contact the state legislature office to keep abreast of changes in the law.
Before pulling the trigger on bankruptcy, be sure that other solutions aren’t more appropriate for your case. There are numerous programs out there that may assist you with your debt, like a credit counseling program, a nonprofit group, government assistance, etc. You may have luck negotiating lower payments by dealing directly with creditors, but be sure to document any get and new agreement terms in writing from each creditor.
Make sure your home is safe. It isn’t inevitable that you will lose your house when you file for bankruptcy. There are mitigating factors, such as lose of value, or multiple mortgages. Otherwise, there is a homestead exemption you should look into, as it might let you stay in your house.
Chapter 13 Bankruptcy
Consider filing using chapter 13 bankruptcy. If you owe an amount under $250,000 and have a consistent income source, Chapter 13 may be right for you. Chapter 13 bankruptcy permits you to remain the owner of your properties, while allowing you to repay your debt using a debt consolidation loan. That plan lasts approximately three to five years, and then you are discharged from unsecured debt. However, if you miss even one payment, the court will dismiss your entire case.
Find out about lowering the cost of the payment you pay monthly on your car, if you are afraid of losing it. Many times, payments can be lowered through Chapter 7 bankruptcy. 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.
Do not omit any information about your finances, assets or debts when filling out your bankruptcy paperwork. You can delay your bankruptcy process if you do not add in all important information. Add absolutely everything to your list, including small amounts. Don’t forget about side jobs, loans you’ve taken out or vehicles that might count as assets.
Exhaust all other option prior to filing personal bankruptcy. One option to consider is credit counseling. May non-profit companies are available to help you. These organizations can work with creditors to lower your payments and interest rates. All you have to do is give them your payments and they handle paying the creditors.
Though you may have filed bankruptcy, you are not at the end of your financial life. Lenders will look more favorably upon you if you show them that you are trying to save money and make whatever payments you can. Build up your savings and see what kind of deal you can get when you apply for a car loan or a mortgage.
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