Deciding to file for personal bankruptcy is a major life decision, and should not be jumped into lightly. Read the ideas and advice in the following paragraphs so that you are aware of what to full expect and should think of prior to making such a crucial decision. Prepare yourself by learning as much as possible beforehand.
Instead of jumping into a bankruptcy filing, be sure your situation requires it. You have better options. For example, you could try credit counseling. Bankruptcy is a permanent part of your credit, so before you make such a big decision, you might want to explore all other choices so that your credit history is affected as minimally as possible.
Never lie about anything in your bankruptcy petition. You might feel tempted to not declare certain assets in your bankruptcy in order to protect them from forfeiture, but if you’re found out, the process could take longer, or worse, you might be banned from filing for bankruptcy completely.
Don’t hesitate to give your attorney a heads-up about something she has missed. Don’t assume that he will remember something you told him weeks ago. Ultimately, this is your bankruptcy and your financial future, so never hesitate to advocate on your behalf.
After filing for bankruptcy, you may have difficulty getting approved for unsecured credit. In this event, you should attempt to apply for a secured card or two. If you pay what you owe back promptly at all times, you can show that you are taking steps to be responsible about your payments and credit rating. Once creditors see that you are making an effort to restore your credit, they may allow you to get an unsecured card in the future.
Before making the decision to file for bankruptcy, be sure you have considered alternative options. There are numerous programs out there that may assist you with your debt, like a credit counseling program, a nonprofit group, government assistance, etc. You may have the ability to negotiate much lower payments, just be sure any debt modifications you agree to are written and that you have a copy.
A lot of bankruptcy attorneys will let you have a consultation, so try several out. Make sure that you meet with an actual lawyer and not an assistant or paralegal, as these people are not allowed to provide legal advice. Look for a lawyer who you can relate to.
Loved Ones
Spend time with friends and family to keep your stress levels to a minimum through the bankruptcy filing process. Going through bankruptcy is difficult. Having to declare bankruptcy leaves many people feeling like a failure. It is not uncommon for a person to feel the need to pull away from loved ones during the process. Isolating yourself from your loved ones can lead to feelings of depression. Because of this, it’s vital you keep spending some time with the people you love despite what you are currently going through.
You should weigh every option before thinking about bankruptcy. Talk to a bankruptcy lawyer to see if a debt repayment plan or reduction in interest rates is a viable option for you instead of bankruptcy. If foreclosure is imminent, see if your loan can be altered at all through a modification plan. These plans allow you a longer pay off period by extending the term of the loan, reducing the rate of interest or forgiving late fees. Ultimately, creditors want their money, and many times repayment plans are preferable to a debtor that is bankrupt.
Once the initial filing period is over, ensure that you are getting out and enjoying life. The filing process is extremely stressful for a lot of the people who go through it. Depression and burn-out from pent of stress will do nothing to help your situation, so it is critical to let go a little. Your life will see improvement after you get past the bankruptcy.
Find the right time to take action. When it comes to filing for bankruptcy, your timing is important. Sometimes, it is good to file immediately, but sometimes it is smarter to wait until you have passed through the worst of things. Speak with a lawyer specializing in bankruptcy in order to learn when you should file your petition.
As shown in this article, bankruptcy doesn’t happen overnight. By going through the process correctly, the outcome will be further in your favor than it might otherwise have been. Use what you learned in this article to straighten your finances and improve your situation.
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