Being faced with the decision to file for bankruptcy can put you under a lot of stress. If you are thousands of dollars in debt, you may not have many options. Yet even if your credit score is not good there are things you can do to still get the things you want, such as a car or home loan, read on to find out how.
Ask yourself if filing for bankruptcy is truly your best option. Alternatives do exist, including consumer credit counseling. Bankruptcy is a serious negative on your credit history so make sure you have no other options before you file. It is important to keep your credit history as positive as possible.
Credit Card
After filing for bankruptcy, you could have trouble acquiring unsecured credit. 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. After some time passes they may be willing to offer you unsecured credit.
Find a bankruptcy attorney who offers free consultations, and 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. Do not make any final decisions until every question you have has been answered. It is not necessary to come to a decision immediately following the meeting. This allows you time to speak with numerous lawyers.
Stay abreast of new laws that may affect your bankruptcy if you decide to file. 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. Your state will have a website to check, or a number you can call, to learn the latest changes in the bankruptcy laws.
Check into less drastic solutions prior to declaring bankruptcy. One example would be that a consumer credit program for counseling if you have small debts. It is sometimes possible to negotiate smaller payment by yourself. If you do this, make sure you save a written record of debt modifications that are negotiated.
Chapter 13 Bankruptcy
Consider Chapter 13 bankruptcy, if you chose to file. You are eligible to file Chapter 13 bankruptcy if your income is reliable and your unsecured debt does not exceed $250,000. This allows you to keep possession of your real estate and property and repay your debt through a debt plan. Such plans generally take between 3 and 5 years to complete, at which point. a discharge will be granted. Consider that if you even miss one payment, your case will not be considered by the court.
When you are looking at a Chapter 7 personal bankruptcy, you may well have debts to worry about for which you share responsibility with another person, such as a spouse, family member, or business partner. Once you complete a Chapter 7 bankruptcy, you will be free of any responsibility of debt, which could put all responsibility on someone close to you. However, creditors can demand co-debtors pay the amount in full.
Be sure you’re acting when the time is right. Timing can be critical when it comes to personal bankruptcy cases. Sometimes you should file immediately; however, there are times when it is better to delay until the worst has passed. Speak with a bankruptcy lawyer to discuss the proper timing for you to file bankruptcy.
Before you file, make sure you understand the laws as much as possible. You need to know certain things, like the fact that it’s illegal to transfer any asserts 12 months before filing your claim. It is also against the law to max out your credit cards before filing for bankruptcy.
Though you may have filed bankruptcy, you are not at the end of your financial life. When you save your money and show lenders that you are making serious efforts to reestablish your credibility they look kindly at this. Manage your finances more efficiently and file for bankruptcy if you absolutely need to get out of your current situation. Once you can show that yo are responsible, lenders will view you more favorably.
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