Are you having financial problems and think bankruptcy is the lone choice you have? There is no need to be stressed out. Plenty of people have gone through this and rebuilt their lives. Many people are filing bankruptcy to relieve financial hardship. The article below discusses some information and tips to help you make sense of bankruptcy.
Do some research online about personal bankruptcy to get a better idea of what this procedure implies. The United States Department of Justice, the American Bankruptcy Institute and the National Association of Consumer Bankruptcy Attorneys, all provide valuable information. As with everything in life, the more you know about filing a claim, the better off you’ll be. You can properly prepare when you know what you’re preparing for.
Credit History
Before you proceed with your personal bankruptcy case, review your decisions to be certain that the choice you are making is the right. Other available options include consumer credit counseling. Bankruptcy can leave your credit history permanently marked. Prior to doing this you need to be sure you try everything else first to get your credit history into shape and to lessen the impact.
Don’t avoid telling your lawyer specific details with your case. Inaccurate or incomplete information can lead to your petition being denied. This is your bankruptcy case, so do not be afraid to remind your lawyer of any key facts.
After you have declared bankruptcy, you may have a hard time being approved for unsecured credit. If this is so, apply for a secured card or two. That will show lenders that you are committed to rebuilding your credit. It will take time, but when creditors see a pattern that satisfies their need to see your good faith with payments, you will then be able to apply for unsecured cards.
You should never give up. If you’ve had collateral, such as a car, electronics, or jewelry repossessed for non-payment, you might be able to recover the property when you file for bankruptcy. There is a chance that you can get back your property if it has been less than ninety days since repossession. Consult with a lawyer that can walk you through the filing process.
Think about all your options before pulling the trigger. There are many other options including debt consolidation and making payment plans with your creditors. If you are facing foreclosure, consider a loan modification plan. Your lender can adjust your loan in many ways including extending the time you have to pay, reducing your interest rate, or canceling some of your late fees. When all is said and done the creditors just want their money, and more often than not will work with you on a repayment plan.
Speak with an attorney about any fears you have about losing your car. You may even be able to get your monthly payment reduced. Lower payments can sometimes be structured into a Chapter 7 solution. Your car must have been purchased more than 910 days prior to filing, be a high interest loan, and you must have had a steady work history for this to work.
Filing for Chapter 13 bankruptcy will not prevent auto loans or mortgages from being obtained. However, it will be a longer and more arduous task. You will have to see your trustee and the approval for this new loan. Draft a personal budget to show that you will be able to repay your new loan. You also have to prepare yourself to explain the reasons you need to buy the item.
Filing for bankruptcy can cause stress. To help yourself deal with this stressful situation, make sure you hire a legitimate attorney. Do not solely use cost to determine whom to hire. The cheapest attorney may not be the best, but the most expensive may not be the best either. Make sure that you verify their reputation through various sources including people in your circle of friends and the BBB. Attending a court hearing will give you experience as to how lawyers handle these cases.
When filing for bankruptcy, ensure you have listed all of your financial obligations. Failing to disclose all of your financial information can cause your bankruptcy petition to be dismissed, or, at the very least, delayed. It does not matter what you think of your financial situation, put the sum amount either way. When it comes to the types of things you might not be thinking about adding, just think about any automobiles you have, any money under the table you’re making, etc.
Remember from the beginning of this article? You aren’t the only one who is filing for bankruptcy. Yet one thing you have that others who file do not is the information from this article. Utilize the tips you learned today and ensure that there is no rough spots when filing for bankruptcy.
