Although some people think filing for bankruptcy is only for losers, they are quick to dismiss the idea when they are faced with it. If you lose your job, your spouse or find yourself overwhelmed with bills, filing for bankruptcy might be the only option left. If this situation proves to be yours, you can help yourself with the contents of this article.
Honesty is of utmost importance during your filing, even though it may be tempting to “pad” your answers a little. Not hiding any assets or income is essential for avoiding possible penalties and your ability to re-file at some point in the future.
Do not be afraid to remind your attorney of important specifics of your case. You should not take for granted that your lawyer will remember every important detail that you have have told him earlier without a reminder. Ultimately, this is your bankruptcy and your financial future, so never hesitate to advocate on your behalf.
Credit Card
Be warned that after your bankruptcy, you may stand out as a leper to credit institutions. You may be unable to get a simple credit card. If you find that to be the situation, consider requesting secured cards. This will prove that you want to improve your credit score. Then, in time, it may be possible for you to obtain an unsecured credit card.
Make sure you are completely honest when filing for bankruptcy. Hiding your assets is never wise. Whoever provides your legal consultation must be privy to all of your financial information. Never hide anything, and make sure you come up with a well devised plan for dealing with bankruptcy.
Be aware of recent changes, if any, in the bankruptcy code. Bankruptcy laws are in constant flux, so just because you knew the law last year doesn’t mean that the laws will be the same this year. Check the website of your state’s legislation or get in contact with your local office to learn more about these important changes.
Before declaring bankruptcy, ensure that all other options have been considered. For example, consumer credit counseling programs can help if your debt isn’t too large. You can also talk to creditors and ask them to lower payments, but be sure to get any debt agreements in writing.
Chapter 7
Be certain that you can differentiate between Chapter 7 and Chapter 13 bankruptcy. If you file using Chapter 7 bankruptcy, you will get all your debts eliminated. All happenings with creditors will disappear. On the other hand, filing for bankruptcy under Chapter 13 means you will have 60 months to pay your debts back. Take the time to learn more about these different options so you can make the best decision possible.
Don’t isolate yourself from family and friends. Filing for bankruptcy, and all that comes with it, can be hard to handle at times. It is often overwhelming, and not quick. Some people may feel embarrassed or feel their self-esteem has taken a beating from it. It can be hard to face the world while the bankruptcy process is taking place. You shouldn’t do this, though, as staying away from the world can amplify any emotional issue you are having, and they could even morph into full-blown clinical depression. For this reason, if you are undergoing personal bankruptcy proceedings, you must continue to live a normal life, spending time with your friends and relations.
Don’t file for bankruptcy the income that you get is bigger than your bills. While bankruptcy may seem like an easy way out of having to pay back all of the debt that you owe, it is a stain that will remain on your credit report for seven to ten years.
Debt Repayment Plan
Look into all of your options before you choose to file for bankruptcy. Speak with an attorney who specializes in bankruptcy to find out if alternatives, such as a debt repayment plan or a reduction of your interest rates, might be better for you. For example, if you are in talks of foreclosure, you could use a modified loan to overcome your debt. The lender can help your financial situation by getting interest rates lowered, dropping late charges, and in some cases will allow you to pay the loan over a longer period of time. 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.
Going through bankruptcy is tough and can be mentally and emotionally draining. To have a reliable and trustworthy guide through the process, find a highly qualified attorney. Try not to pick a lawyer based on cost alone. You don’t have to use the most expensive attorney; you just need a good quality attorney. When deciding on an attorney get referrals, contact your better business bureau or get a free consultation from at least three attorneys. Consider attending a court hearing so you can witness how the lawyer operates.
It is possible to exhaust every possible option to improve your financial situation and still find bankruptcy the only solution. There is no need to feel stress if you are faced with this situation. This article will offer you some helpful information.
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