There are many emotions experienced by those going through personal bankruptcy. Many live with the constant fear of being unable to repay their debts while also maintaining a decent standard of living. As you can see, filing for bankruptcy does not mean life is over.
Do some research online about personal bankruptcy to get a better idea of what this procedure implies. The United States DOJ, along with a number of other bankruptcy institutes and attorneys specializing in bankruptcy can give you invaluable information. The greater your body of knowledge, the better prepared you will be to make the decision of whether or not to file and to make certain that if you do file, the process is a smooth one.
Prior to filing for bankruptcy, be sure you have investigated all of your alternatives. Avail yourself of other options, including consumer credit counseling, if they are appropriate for your situation. Before you take the drastic move of filling for bankruptcy and living with a long lasting bad credit history, make sure to consider using another way that may not be as damaging to your credit.
Instead of relying on random selections from the phone book or Internet, ask around and get personal recommendations. There are lots of unsavory companies and lawyers out there who prey on people who are in desperate straits. It is up to you to find someone that is trustworthy and can make the process go smoothly.
If you are seriously thinking of filing bankruptcy, make sure that you contact an attorney. It is unlikely that you will be able to comprehend all the various rules and regulations involved in bankruptcy law. An attorney that specializes in personal bankruptcy, can help guide you and make sure that your filing happens properly.
Take advantage of the opportunity to consult with a number of bankruptcy lawyers who offer the first visit at no charge. Ensure that your meeting is actually with the attorney, not with a paralegal or an assistant. People in these positions are unable to offer legal advice. Hiring a lawyer could help you become comfortable with the legal things that you will encounter.
There are differences between Chapter 13 bankruptcy and Chapter 7; be sure to familiarize yourself with both. Investigate the benefits and pitfalls of both. Online resources may be able to provide all the information you need. If something doesn’t make sense to you, go over it with your lawyer prior to choosing which one to file.
If you make more money than what you owe, filing for bankruptcy is not a good option. Bankruptcy might seem like a good way to get out of paying your bills, but it will devastate your credit for the next ten years.
Once you have completed the bankruptcy filing, you should take time to do something you enjoy. Bankruptcy is a stressful process: you will have to go over your bad financial decisions and perhaps feel ashamed about your decision. That stress could lead to complete depression, if you do not take the necessary steps to fight it. You are getting a fresh start, and things will get better.
Personal Bankruptcy
Before you file your petition, be sure that you understand personal bankruptcy rules. There are several pitfalls with personal bankruptcy that can make your case harder to handle. If you make an egregious mistake, the judge might even dismiss your case. Before you begin bankruptcy proceedings, research as much as you can. Doing this can make the process simpler.
Avoid large cash advances from credit cards when considering bankruptcy. You may think these debts will just be washed clean, but you are wrong. This will be viewed as fraud, and you may be held responsible for the balances despite your bankruptcy filing.
Do not hesitate or stall when determining if filing for bankruptcy is the correct choice for your life and situation. As with anything in life, putting off important things such as debt repayment can snowball quickly out of control. Speaking with someone knowledgeable as soon as you can helps get you started on the bankruptcy process before your situation becomes any worse.
Credit Cards
Lots of individuals who filed bankruptcy vow to never again use credit cards or lines of credit ever again. This is not wise because you need to rebuild a good credit file. Credit cards are necessary for proving that you have gained financial stability and for garnering mortgage and auto loan approvals. Keep it simple with one card and take a slow approach to rebuilding.
Make a prompt decision to accept more responsibility for your financial situation before you file. Avoid incurring new obligations or allowing existing debt to grow in advance of your bankruptcy. Your creditors will take your current finances into account when assessing your bankruptcy filing. You want to show them that you are doing everything you can to make your situation better.
After reading this article, you should be able to see that personal bankruptcy isn’t so bad. While filing for bankruptcy is initially an emotional downer, things will improve. Follow the advice in this article for help in controlling your debt and deciding if bankruptcy is right for you.
