Declaring bankruptcy is a negative process. A lot of people feel ashamed and embarrassed about filing for bankruptcy and do not want to deal with their situation. Take heart, whether you choose to file bankruptcy or not, there are options available to help you get through your financial difficulties.
Most people that file for bankruptcy owe a lot of money that they could not pay off. If you find yourself needing to file for bankruptcy it is important to familiarize yourself with the state laws. Bankruptcy rules vary by jurisdiction. For instance, in some states, you can’t lose your home to bankruptcy, while in other states, you can. Familiarize yourself with the bankruptcy laws of your state prior to filing.
If you suspect that bankruptcy filing may be a reality, don’t try to discharge all your debt in advance by emptying your retirement or saving accounts. You should not use your retirement savings unless the situation calls for it. Using your savings is necessary, but decimating it and leaving yourself dangling with no future financial security is not a good idea.
Don’t avoid telling your lawyer specific details with your case. Don’t assume that they’ll remember something important later without having a reminder. Do not hesitate to speak up; this is your hearing and your future is on the line.
Be aware that getting unsecured credit is going to be tough once you’ve gone through bankruptcy. This being the case, look at secured card options. This at least shows you are making an honest attempt at reestablishing your credit worthiness. After some time passes they may be willing to offer you unsecured credit.
Do not abandon hope. Filing for personal bankruptcy may possibly enable you to reclaim your personal property that have been repossessed, like your car, electronics and jewelry items. If your property has been repossessed less than 90 days prior to your bankruptcy filing, there is a good chance you can get it back. Discuss your options with a good lawyer who can help you with the filing of your bankruptcy petition.
Chapter 13
Learn the differences between Chapter 7 and Chapter 13 bankruptcies. Chapter 7, for example, will wipe away every one of your outstanding debts. Your responsibilities to your creditors will be satisfied. Filing Chapter 13 differs by requiring you to agree to a 60 month plan to repay your debts before they are totally eliminated. You need to determine which type of bankruptcy is right for you given your unique financial situation.
Do not file for bankruptcy if your income is greater than your bills. Sure, bankruptcy can get rid of that debt, but it comes at the price of poor credit for 7-10 years.
Don’t forget to enjoy your life once your finances get fixed. Filing is the most intensive step in the process, so afterwards it’s important to let go of some of your stress. Make sure you take care of your part and let your attorney do the rest. Your life will see improvement after you get past the bankruptcy.
If you are in the midst of a Chapter 13 bankruptcy, it is possible to apply for certain loans. Of course, it’s difficult. You need to contact your trustee so you can get approved for a new loan. It is important to make a budget and prove that you are able to afford the payment. Also, be sure you have a clear explanation as to why the item you are purchasing is absolutely necessary.
Find the right time to take action. Filing at the right time can make things go much more smoothly. There are situations in which it is in your best interest to file immediately, but other times it is advisable to wait. Speak with a bankruptcy lawyer to discuss the proper timing for you to file bankruptcy.
Bankruptcy is a difficult time that always leads to lots of stress. Make sure that you hire an experience lawyer to get your bankruptcy done properly. Don’t skimp when hiring a good lawyer. Choosing a lawyer should be based on finding one with a proven track record who can give you the help that you need. Get referred from others who’ve been in the same situation, check the BBB, and interview several people through free consultations. You might be able to view a court hearing. You might be able to watch how your prospective attorney handles the case.
Don’t wait until it is too late to file for bankruptcy. Some people think that by ignoring financial problems, they will just disappear. This kind of thinking could prove to be a mistake. If debts are not dealt with quickly, things can quickly get out of control. Not only will you be faced with late fees and interest, but you may also be faced with a wage garnishment or foreclosure if you ignore your financial woes. The minute you realize that your debts are too big to take care of, contact a bankruptcy attorney to discuss your options.
Make sure you are completely aware of bankruptcy laws before you consider filing. As an example, it is prohibited for someone to transfer assets from the filer’s name for one year prior to filing. Also, the filer can not increase their debt before filing.
Avoid large cash advances from credit cards when considering bankruptcy. You may think these debts will just be washed clean, but you are wrong. This is considered fraud, and even after bankruptcy you can be forced to pay all of that money back to the credit card company.
As you can see, you don’t need to surrender to bankruptcy. The advice in this article will be valuable as you work to find another financial path. By using the advice you have learned here, you will find big changes in your life, and you can avoid damage to your credit score.
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