If you have been put into the position of needing to file for bankruptcy, you are likely not to be very happy about it, but it does not lead to your life ending. The bankruptcy option was created to give you another chance to live a financially responsible life. Keep reading for ways to experience bankruptcy as a positive thing.
Be sure you’re doing what’s right before you file for bankruptcy. You have better options. For example, you could try 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.
It is essential that you are honest and forthright in the documentation you provide for your bankruptcy filings. 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.
Unsecured Credit
Getting unsecured credit post-bankruptcy will likely be difficult. If this happens to you, think about applying for a couple of secured credit cards. 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. Unsecured credit may be offered to you quicker than you think after doing so.
Think carefully about your different options before filing for bankruptcy. For example, there are credit counseling services that can help you to deal with smaller amounts of debt. You should also try negotiating a payment plan with your creditors; make sure you get a written agreement of the new payment plans.
If you are considering filing for personal bankruptcy, be certain that this is really the right course of action for you. You may find consolidating your debt may be simpler. Bankruptcy is not a simple, breezy course of action that should be taken lightly. It will certainly affect the credit rating that you have in the future. Therefore, you must make sure that there is no other option that you could take before you file for bankruptcy.
Speak with your attorney about ways you can keep your car. Filing for Chapter 7 can help to lower your monthly payments on possessions such as your vehicle, helping to ease your financial load. For instance, you can get lower payments on you car if you purchased it before filing and took a loan with high interests on it.
Chapter 7
Remember that your Chapter 7 filing may affect other people in your life as well. 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, anyone sharing the loan with you may be forced to pay back the entire amount for the amount in full, which spell financial disaster for them.
Filing for Chapter 13 bankruptcy will not prevent auto loans or mortgages from being obtained. This is a lot harder. You will need to go through various hoops in order to be approved for any new loan type. Draft a personal budget to show that you will be able to repay your new loan. You will always have to let them know why this item needs to be purchased.
Chose the proper moment to make your move. Timing can be critical when it comes to personal bankruptcy cases. Sometimes, you may need to file quickly; however, at other times, you should wait until the worst is over. The professional advice of a bankruptcy lawyer can help you pin down the best time to file given your current financial state.
It is important to file bankruptcy before its too late. For some people, they tend to ignore their poor financial situation and just wishing it away, but that is only putting you in more danger. Debts can get out of control fast. If you’re not taking care of these debts, you may be getting into trouble like wage garnishment. As soon as you stop denying that your debt is unmanageable, seek the advice of a good bankruptcy attorney.
Before filing for bankruptcy, you must be educated on the specifics of all bankruptcy laws. Here is one example, an individual who files for bankruptcy cannot transfer any assets for a year before the filing date. Moreover, a filer is prohibited from spending or incurring extra debt prior to their bankruptcy filing.
As you can see, events that cause bankruptcy are a sad thing, indeed. The initial process might be difficult and draining, but there’s something special waiting on the other side. Using the advice you have found here, bankruptcy can be the beginning of a new, exciting chapter in your life!
