And it goes without saying that whatever brought you to bankruptcy was probably an unhappy experience; nonetheless, when your bankruptcy proceedings are over, you can move on to have a happier life. You are being given the opportunity to start again with a debt-free slate. Keep reading for ways to experience bankruptcy as a positive thing.
Make sure you’ve exhausted all other options prior to declaring bankruptcy. You can also avail yourself of other options, such as consumer credit counseling. Your credit record will be harmed by a bankruptcy filing, and therefore prior to making such a decision, it is wise to investigate other options in order to minimize the damage you suffer.
Don’t hesitate to give your attorney a heads-up about something she has missed. Don’t assume that they will recall every detail that you go over with them without a friendly reminder. Don’t fear speaking up since it affects your case and future.
Rather than checking online, try to get recommendations from friends or family about a suitable bankruptcy attorney. There are a number of companies who may take advantage of your situation, so always work with someone that is trustworthy.
Before you file for bankruptcy, find out which of your assets will be exempt from seizure. The Bankruptcy Code includes a list of the types of assets that are exempt from the bankruptcy process. Be well prepared for bankruptcy by reviewing this list. It will tell you whether are not the things you value most are subject to seizure. If you don’t read this list, there is a chance that you might get nasty surprises when they take your things away.
When a bankruptcy is imminent, retain a lawyer immediately. Filing for bankruptcy is complicated and there is no way you can understand all you need to know. A personal bankruptcy lawyer will be able to help you and ensure you are doing things the proper way.
Chapter 7
The two main kinds of bankruptcy are Chapter 7 and Chapter 13. Make sure you understand them so you know what is best for you. Chapter 7 eliminates all debts. This type of bankruptcy ends any relationship you might have with creditors. A Chapter 13 filing involves a repayment plan, though. Typically, you will make a partial payment against your debts over the next 60 months before the balance of the debts is lifted. You must know about the different bankruptcy types, and how each can affect you.
Spend time with friends and family to keep your stress levels to a minimum through the bankruptcy filing process. Bankruptcy can take a toll on you. It takes a long time, it can be stressful, and people feel unworthy, guilty and ashamed. A lot of people hide away until the entire proceedings have been played out. This is not a good idea because staying alone could cause serious problems with depression. So, it is critical that you keep spending time with the ones you love, regardless of the current financial situation.
Don’t forget to enjoy your life once your finances get fixed. Many people who undergo this process become way too stressed out. This stress could morph into clinical depression, if you fail to adequately address the problem. Bankruptcy is hard to go through, but you must remember that a less stressful, more enjoyable life is waiting on the other side of it.
Keep in mind that filing for Chapter 7 bankruptcy may affect other people than just you, including family members, and in some cases, business associates. Once you file for Chapter 7 bankruptcy protection, you no longer have legal responsibility for debts that you and any co-signers originally agreed to. But, creditors will ask for the money from your co-debtor.
Look at bankruptcy as a chance to mature and take responsibility for your personal finances. You may need to get credit counseling or simply learn how to balance your budget. Feelings such as these are not of value to you and it is possible for them to be psychologically harmful. Remembering to stay positive as you go through financial difficulties is a great way to deal with your bankruptcy filing.
Before you make the final decision to file bankruptcy, consider the other options you have. One option to consider is credit counseling. There are a number of companies that will assist you, many of which are non-profit. These companies work with creditors to reduce your payments and interest. They act as intermediaries between you and your creditors; you pay the counselors and they pay the companies to which you owe money.
One thing to consider is that filing bankruptcy might be a better alternative to making late payments or missing payments completely. Bankruptcy can be seen on your credit history for 10 years, but you can begin repairing the damage immediately. One of the benefits of bankruptcy is a relatively fresh start.
Filing for bankruptcy doesn’t mean you will lose all your assets. You can keep your personal property. Things like jewelry, clothes, and electronics are included in this category. This depends on the laws in your state, the bankruptcy type for which you file, and your unique finance situation, but it may be possible to retain your home, car and other large assets.
As stated in the above article, anytime someone is forced into bankruptcy is never a happy situation. That said, filing for bankruptcy can be a positive turning point in your life. Bankruptcy may well represent the point where you turn your life around, and you can handle it better by making use of the suggestions this article has provided.
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