The path to bankruptcy is not normally a happy one, but your life can improve once the filing has occurred. Wiping the slate clean means having a new lease on life. Keep reading to see how bankruptcy can actually give you a new lease on life, rather than function as a permanent financial albatross.
Before you proceed with your personal bankruptcy case, review your decisions to be certain that the choice you are making is the right. You have other options, including consumer credit counseling help. Bankruptcy stays on your credit for a whole decade, so if there are less drastic options that will solve your credit problems, it is in your best interest to make use of them.
Never lie about anything in your bankruptcy petition. Not hiding any assets or income is essential for avoiding possible penalties and your ability to re-file at some point in the future.
Unsecured Credit
You might experience trouble with getting unsecured credit after filing for bankruptcy. This being the case, look at secured card options. By doing this, you will be letting people know that you want to fix your credit score. Then, in time, it may be possible for you to obtain an unsecured credit card.
Try to get a bankruptcy lawyer that your friends recommend, as opposed to someone that you find from the Internet or yellow pages. There are lots of unsavory companies and lawyers out there who prey on people who are in desperate straits. It is up to you to find someone that is trustworthy and can make the process go smoothly.
Find out what you exemptions are prior to filing bankruptcy. Check the bankruptcy laws in your state to find out if certain items are excluded from your bankruptcy filing. It’s crucial to read that list before filing to see which of your prized possessions can be seized. Failure to do this could cause some ugly surprises down the road when you discover that your valuables must be seized.
Be honest when filing for bankruptcy, because hiding liabilities or assets can only cause trouble to you. Wherever you file, that court has to be made aware of all details regarding your finances, positive and negative. Bankruptcy can be a chance to simplify your finances, but any schemes you employ to conceal the truth can ruin that chance for you.
You should not have to pay for an initial legal consultation, and such meetings are great opportunities to ask lots 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. Only choose a lawyer if you feel like your questions were answered. Take your time before you decide to file after you meet with your lawyer. After your consultations, do some additional research on each attorney you consider qualified for the job.
Most bankruptcy lawyers offer a free consultation, so meet with several before you decide on one. Be certain that the person you meet with is really a lawyer. Avoid meeting with paralegals or legal assistants because they cannot give you legal advice. Shopping around for a lawyer can help you find someone with whom you feel comfortable.
Filing for bankruptcy is not recommended when you have income more than your debts. It can seem like bankruptcy can be an easy way to avoid paying back your debts, however it leaves a serious mark in your credit report that can last between seven and ten years.
Rest assured, when you file for Chapter 13 bankruptcy, you still have the ability to take out mortgage and car loans. However, it will be a longer and more arduous task. You will have to see your trustee and the approval for this new loan. To show that you are responsible and prepared for the undertaking of a new loan, flesh out a full budget. You will also need to explain why it is necessary for you to take out the loan.
As mentioned earlier, the events that drive anyone to declaring financial bankruptcy are not a happy story. But, that does not mean life after bankruptcy has to be negative. Using the advice you have found here, bankruptcy can be the beginning of a new, exciting chapter in your life!
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