Filing for bankruptcy is not a pleasant experience. The embarrassment can be overwhelming when friends discover your poor financial position. So don’t give in to bankruptcy, use this article as your guide to figure out how.
It is important that you increase your knowledge on personal bankruptcy by reviewing websites that provide reliable information. The United States Run a quick Internet search to find out all the different agencies you should be contacting or visiting via the web to find out what you can. The more knowledgeable you are, the more you can be sure that you are making the right decision and that you are taking the right steps to ensure your personal bankruptcy goes as smoothly as possible.
Credit History
Make sure you’ve exhausted all other options prior to declaring bankruptcy. It is possible to take advantage of other options, like 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.
Make sure you are always providing honest documentation whenever you have to file for personal bankruptcy. Do not try to shield some assets or income from your creditors. This can get you in serious trouble and prevent your bankruptcy petition altogether.
You might find it difficult to obtain an unsecured credit card or line after emerging from bankruptcy. Since it is important that you work to rebuild your credit, you should instead think about applying for a secured card. This will prove that you want to improve your credit score. After a time, you are going to be able to have unsecured credit cards too.
Be completely honest whenever you file for personal bankruptcy. Hiding any asset or liability is a risk that will bite you in the end. The person you choose to file with needs to know both the good and bad aspects of your finances. Being honest is both the right thing to do and, moreover, it is required by law.
If you are seriously thinking of filing bankruptcy, make sure that you contact an attorney. It is difficult to make all of the necessary decisions yourself, and expert guidance will be helpful. Choose an attorney versed in personal bankruptcy to make sure you don’t make mistakes.
Most bankruptcy lawyers offer a free consultation, so meet with several before you decide on one. Be certain you talk to the lawyer, himself, instead of a paralegal or assistant; those people aren’t allowed to give legal advice. Look for a lawyer who you can relate to.
Protect your house. Bankruptcy filings don’t necessarily have to end in the loss of your home. If your home value has gone down, or if there’s a second mortgage, you might be able to keep it. You may also want to check out the homestead exemption because it may allow you to keep your home.
If you’re unsure, then you need to learn what a Chapter 7 bankruptcy can do for you, as opposed to what Chapter 13 does. Read up on the topic and familiarize yourself with the benefits and drawbacks of both variations. Once you have done your own research, be sure to review your findings with your lawyer, who is the expert. This way, you can be sure of making a well informed choice.
Before ultimately deciding whether or not to file for bankruptcy, be sure to weigh the different options available to you. For example, you can always talk with a lawyer to see about different options through creditors or other means that will not require wiping the entire slate clean. Various loan plans out there can be a lifesaver if you’re facing a foreclosure. There are many ways in which a lender can make adjustments that will be helpful to you. Among them are extending the loan, forgiving late charges and reducing the interest rate. Above all else, what creditors want is to get their money. Sometimes they would rather settle for a repayment plan instead of a debtor who is bankrupt.
Your trustee may be able to help you secure an auto loan or get a mortgage even though you have filed Chapter 13. There will, however, be obstacles. You have to meet with your trustee to get approval for the new loan. Create a budget and prove you can afford a new loan payment. An explanation of need will also be necessary.
Get the word “shame” out of your head when filing for bankruptcy. The bankruptcy process makes people feel guilty and ashamed. Feeling like this will not help your situation and can actually do serious damage to your mental well-being. Try to keep a positive attitude during this tough time and you will be able to better cope with bankruptcy.
As you can see, you don’t need to surrender to bankruptcy. Use the tips you just read to make the best decision possible. By using the advice you have learned here, you will find big changes in your life, and you can avoid damage to your credit score.
