Filing for bankruptcy is always a bad thing. The need to file for bankruptcy is usually the result of misfortune. The process can be embarrassing and can cause a person to feel secretive when it comes to finance. Read this article to learn more about bankruptcy and make the best decision.
Filing for bankruptcy is something many people are forced to do when there debts become too much of a burden, and they can no longer afford to pay them. If you’re in this situation, learn about the laws where you live. There are greatly varying laws concerning bankruptcy, so it is important to make sure you are getting the correct information. In a few states, they see to it that your house is protected. This is not the case when it comes to other states. It is best to become familiar with your state’s laws regarding bankruptcy before you take the steps to file.
Before undertaking the bankruptcy process, ensure you have made the correct decision. You have other options, including consumer credit counseling help. Bankruptcy has a negative effect on your credit reports, in that it is permanently there. Before you take this step, make sure all your options have been considered.
Always remind your lawyer of specifics that are important to your case. Don’t just assume they already know and that they have these important details committed to memory or written down. It’s your financial future that is in his hands; don’t hesitate to speak up.
Unsecured Credit
It’s not uncommon to learn soon after bankruptcy that you are unable to get an unsecured credit card easily. A great way to rebuild your credit is to apply for a prepaid credit card. 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. In time, you might be granted unsecured credit again.
Be sure to hire an attorney before you embark upon filing for personal bankruptcy. It is difficult to make all of the necessary decisions yourself, and expert guidance will be helpful. An attorney will make sure that everything is being done correctly.
Protect your house. Filing for bankruptcy does not mean you have to lose your home. Depending on certain conditions, you may very well end up being able to keep your home. Check to see if you pass the requirements necessary to file for a homestead exemption.
If you make more money than what you owe, filing for bankruptcy is not a good option. Though bankruptcy may appear to be a good way to escape your debts, it does affect your credit negatively for a fairly long time.
Remember to have fun with your life when you’re done with the filing process initially. After filing, many people find themselves stressing over their situation and how to fix it. The stress of dealing with bankruptcy could cause you to fall into a depression, unless you take steps to take care of yourself. After you have finished filing for personal bankruptcy, your life will improve.
Speak with an attorney about any fears you have about losing your car. You may even be able to get your monthly payment reduced. Filing for Chapter 7 can help to lower your monthly payments on possessions such as your vehicle, helping to ease your financial load. 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.
Chapter 7 Bankruptcy
If you have a co-debtor, consider the ramifications that filing a Chapter 7 bankruptcy will have. A Chapter 7 bankruptcy will relieve you of your legal responsibility to pay any joint debts. Although, your creditors may insist that the co-debtor pay off the entire debt.
Your trustee may be able to help you secure an auto loan or get a mortgage even though you have filed Chapter 13. However, the process of approval is a bit more stringent. Your bankruptcy custodian will need to approve the loan. Present a planned budget that shows how you can take on the loan payment and stay current. You will also need to explain why it is necessary for you to take out the loan.
Get the word “shame” out of your head when filing for bankruptcy. Often, with bankruptcy, come feelings of guilt, shame and worthlessness. Although dealing with a bankruptcy is stressful, try to focus on the positive. Having the right outlook during a tough financial upheaval is a great attitude in coping with bankruptcy.
Depending on your current financial situation, it may or may not be necessary for you to file for bankruptcy. Take the information provided here and avoid filing if at all possible. Begin today with what you learned here and soon you will see positive changes in your financial situation, so you can avoid the harmful process of filing for bankruptcy.
