No one ever thinks that they will go through a bankruptcy. Circumstances can change and there is not a better choice. Knowing the right way to cope with that is vital. If you’re in this boat, read on for some helpful advice.
One of the most important things to remember when filing for bankruptcy is to be honest and truthful every step of the way. You may be tempted to try to hide income and personal assets from discovery, but doing so often leads to major complications, monetary penalties and the possibility that your case will be thrown out of court.
Getting Unsecured Credit
You might experience trouble with getting unsecured credit after filing for bankruptcy. Look into getting a secured credit card in order to get back on your feet with building credit. That will show lenders that you are committed to rebuilding your credit. Once you’ve built up a history of on-time payments, you may start getting unsecured credit again.
Although you can find many bankruptcy attorneys listed in your local Yellow Pages or online, it’s best if you can find one through the personal recommendation of a friend, family member or acquaintance. To handle your bankruptcy, you need a trusted attorney, not a shady one that is out to take your money.
Determine which assets won’t be seized before filing for bankruptcy. The federal statutes covering bankruptcy can tell you exactly which assets are exempt from forfeiture to pay off creditors. Many belongings may become eligible for repossession or seizure after filing for bankruptcy. If you don’t heed that advice, you might find yourself getting surprised when your favorite things are repossessed.
If you aren’t totally honest about your assets when filing a bankruptcy petition, you could get into serious trouble. Whomever you plan to use should know a lot about the finances that you have, both the good and the bad. Telling the truth will allow you reach a solution that is feasible, given your current situation.
Weigh all of your options before declaring bankruptcy. For example, consumer credit counseling services can often help you figure out a workable repayment plan with creditors. It may also be possible to get lower payments, but if you do, be sure to obtain records for any consensual debt modifications.
Chapter 7
Know the differences between Chapter 7 and Chapter 13 bankruptcy. The Chapter 7 variety can help you eliminate your debts almost entirely. All of your financial ties to the people you owe money to will disappear. If you file for Chapter 13 bankruptcy, however, you will enter into a 60 month repayment plan before your debts are completely dissolved. Look into both types of bankruptcy before deciding which one would suit your particular needs.
Know and understand the difference between filing for Chapter 7 bankruptcy versus Chapter 13 bankruptcy. Read up on the topic and familiarize yourself with the benefits and drawbacks of both variations. Learning about bankruptcy is not simple, so call a bankruptcy attorney to make an appointment to ask questions.
Think about any co-debtors you have prior to filing for Chapter 7 bankruptcy. When filing for Chapter 7, you won’t be responsible legally for debt signed by co-debtors and yourself. Sadly, this will not be the case for your co debtor. Your creditors may simply turn their attention to your hapless acquaintance.
Debt Collectors
Know the rights that you have as you file for bankruptcy. There are unscrupulous debt collectors who may suggest that your obligations cannot be included in a bankruptcy. There are a few debts that cannot be cleared, such as student loans and child support, but be sure to know the details when dealing with debt collectors. If a collector tries to convince you that some other type of debt, such as a credit card, is non-discharagable, get the company’s information and send a report to your state attorney general’s office.
Bankruptcy is a challenging time and can create a huge amount of mental and emotional stress. Make sure that you hire an experience lawyer to get your bankruptcy done properly. Do not choose your attorney based solely on price. You don’t have to use the most expensive attorney; you just need a good quality attorney. Get referred from others who’ve been in the same situation, check the BBB, and interview several people through free consultations. You could also sneak into court to watch a real live bankruptcy proceeding to see how that attorney handles the situation.
If you have found yourself facing bankruptcy, it is crucial that you get good advice on what to do next. The process will get easier as you learn all you can. This guide has given you a lot of information in order for you to approach your finances with a stress-free state of mind.
