Bankruptcy is a tough decision, one that should be given a lot of thought. Read the tips and suggestions in the following article so you know what to expect and just what you should be doing before you make that important decision. Find out all the information you can before filing for bankruptcy.
Credit Card
You may still have trouble receiving any unsecured credit after a bankruptcy. A great way to rebuild your credit is to apply for a prepaid credit card. Having a credit card of any type will allow creditors to realize that you’re attempting to work in the right direction to repair your credit. In time, you might be granted unsecured credit again.
If you aren’t totally honest about your assets when filing a bankruptcy petition, you could get into serious trouble. Wherever you file, that court has to be made aware of all details regarding your finances, positive and negative. Do not hold back anything, and form a sound plan to make peace with your reality.
See if there is an alternative you can use before declaring bankruptcy. You could find relief from small debts by using a consumer credit counselor. You can also talk to creditors and ask them to lower payments, but be sure to get any debt agreements in writing.
Before picking a bankruptcy lawyer, speak with more than one, since most offer a consultation for free. Make sure you meet with a licensed attorney rather than a paralegal or assistant, because it is illegal for these people to give legal advice. Taking the time to compare lawyers will ensure that you get a person that you can be yourself around.
Be sure you know what the difference between Chapter 13 and Chapter 7 bankruptcy is. Weigh all the information you can find on- and off-line to make an educated decision. If you’re really not sure how this all works after your research, meet with your lawyer and ask them prior to making a decision.
Don’t automatically assume that bankruptcy is your only option. Talk with a bankruptcy lawyer and ask about alternatives, such as debt consolidation or negotiating with creditors. Loan modification plans can help if you are dealing with foreclosure. There are a lot of ways that your lender can assist you, such as reducing interest rates, eliminating late fees, or extending the term of your loan. At the end of the day, creditors want to get paid, and sometimes a debt repayment plan is preferable to dealing with a bankrupt debtor.
After your initial filing, take time to enjoy yourself a bit and get your mind off of it. So many people become stressed when they file. Stress easily leads to depression, if you are not maintaining control of your emotions. While the process is tough, you are getting a chance to start over.
It is still possible to get a mortgage or car loan, even if you are filing for Chapter 13 bankruptcy. It’s a bit more difficult, though. You need to speak with your trustee so that you can be approved for a new loan. When you meet with your trustee or financial adviser, make sure that you come up with a sound budget proposal. Also, be sure you have a clear explanation as to why the item you are purchasing is absolutely necessary.
If you decide to file for bankruptcy, it’s important that you’re educated about your rights. It is not unusual for creditors to claim that their debt is not able to be discharged. Only a few kinds of debt, like student loans or child support, are ineligible for bankruptcy. If you are told by a debt collector that your debts are not dischargeable, make a record of your conversation and report the individual to the proper state authorities.
The article you have just read explains a few different methods you can use when filing for bankruptcy. There are a number of things to do, each of which deserves careful attention. If you apply this advice, you are certain to be prepared when bankruptcy rears its ugly head.
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