Do not consider bankruptcy until you have researched your other options. This is due to the current financial climate. Before you even consider going through the bankruptcy process, it is crucial you educate yourself on all things related to bankruptcy so you can make the best decision for you. The below article will provide you with this wisdom.
Think through your decision to file for bankruptcy carefully before going ahead with it. Other available options include consumer credit counseling. 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.
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. If that is the case, you should try applying for one, or two secured 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. Once you’ve built up a history of on-time payments, you may start getting unsecured credit again.
Familiarize yourself with the bankruptcy code before you file. These kinds of laws are constantly changing and it is important that you are aware of these changes, so that you can learn how to properly file for bankruptcy. To find out about these changes, you can look at your state’s legislation website or contact their office.
Seek a less serious option prior to filing for bankruptcy. For example, consumer credit counseling programs can help you by renegotiating your debts with your creditors into payments that you can afford. Negotiating with creditors is another option, but creditors are notorious for “forgetting” these agreements, so get them in writing!
Make sure you know how to differentiate between Chapter 13 and Chapter 7. Research them online to see the positive and negative aspects of each one. 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.
Ensure that you bankruptcy is your best choice. Many times a consolidation loan will ease your financial struggles. The whole process of filing for bankruptcy can be a long, and hard one. It will affect your access to credit in the future. Before you decide to file for bankruptcy you want to be absolutely certain that it is the only way to resolve your problems.
Chapter 13 Bankruptcy
Thing about filing a Chapter 13 bankruptcy. If you posses a regular source when it comes to income, and you have less than $250,000 of unsecured debt, you could file using Chapter 13 bankruptcy. This lets you keep any real estate and personal property while you repay all your debts through a consolidation program. Typically, any plan you develop will last around 3-5 years. Afterwards, any remaining unsecured debts will be discharged. However, if you are unable to properly commit to the plan you agree to, your case can be dismissed.
After your initial filing, take time to enjoy yourself a bit and get your mind off of it. It’s not uncommon to be overwhelmed by the filing process. Depression and burn-out from pent of stress will do nothing to help your situation, so it is critical to let go a little. Life is going to get better once you get through this.
If you are moving forward with a Chapter 7 bankruptcy, you need to learn how that can negatively affect anyone who shares loans with you. Once you have filed Chapter 7, you, by law, are not responsible for any of your debts that also include your co-debtor. Creditors, however, will hold the co-signer liable for the entire balance of the debt.
Make sure that you act at the appropriate time. They say timing is everything, and this rings true when filing for bankruptcy. There are occasions where it pays to delay and others where a quick decision is the best option. Speak with a lawyer specializing in bankruptcy in order to learn when you should file your petition.
If you are thinking about filing for bankruptcy, one of the first things you should do is look into the laws of your state. As an example, it is prohibited for someone to transfer assets from the filer’s name for one year prior to filing. In addition, it is unlawful for the filer to increase the amount of debt they are carrying on their credit cards right before they file.
Write down every debt you have. This will be your basis in filing for bankruptcy, so see to it that you write down all of the debts you’re aware of. Be 100% certain that the amounts you are claiming as being owed are true and correct. Don’t hurry through this task; the information needs to be correct for you to receive a discharge.
As you learned from the introduction of the article, bankruptcy is growing a lot these days, especially since the economy is slowly rebuilding. To help you make good decisions regarding bankruptcy, consult with this article and use the knowledge to your advantage.
