Is is often hard to live with bankruptcy. The number of options available to those with financial problems can be small. But remember that there is always a way out of a situation you are in, so do not let bankruptcy scare you.
You should check with the personal bankruptcy resources available online to educate yourself thoroughly before you begin the process. The United States Justice Department, the ABI (American Bankruptcy Institute), as well as the NABCA (National Assoc. Consumer Bankruptcy Attorneys) are excellent sources of information. The more you know, you can be confident you are choosing the right thing and that you are taking the right road to make sure your bankruptcy proceeds as easily as possible.
Honesty is of utmost importance during your filing, even though it may be tempting to “pad” your answers a little. Do not try to shield some assets or income from your creditors. This can get you in serious trouble and prevent your bankruptcy petition altogether.
After a bankruptcy, you may still see problems getting any kind of unsecured credit. If that’s the case, it is beneficial to apply for one or even two secured cards. This will show people that you are serious about getting your credit record back in order. After using a secured card for a certain amount of time, you might be offered an unsecured card once again.
Before you file for bankruptcy, find out which of your assets will be exempt from seizure. Check the bankruptcy laws in your state to find out if certain items are excluded from your bankruptcy filing. Make sure that you carefully look over this list prior to filing to discover if your valuable assets will be seized. If you do not read this list, you could be in for some nasty surprises in the future, if some of your most prized possessions are seized.
Keep at it! Certain property cannot be repossessed while you are in the process of filing for bankruptcy so be sure to learn about the laws in your state. If it has been 90 days or less between the repossession of your property and your filing, you might be able to get your property back. Speak with your attorney about filing the correct petition to get your property back.
Don’t file for bankruptcy until your represented by an attorney. Filing for bankruptcy is a complicated procedure, and you may not be aware of all the ins and outs. A specialized bankruptcy lawyer can ensure that you are handling your bankruptcy filing the right way.
State Legislature
Do some research about laws and legislation before filing. This area of law is in constant flux and it is imperative that you know where the law stands at the time you file for your bankruptcy. Review the state legislature web site or contact the state legislature office to keep abreast of changes in the law.
Do not forget to be around those you love. The bankruptcy process can be brutal. It can take a long time, take a great emotional toll and cause people to feel embarrassed and defeated. A lot of people become depressed and withdrawn until their bankruptcy is discharged. However, becoming a hermit will only increase feelings of self-doubt and could make you depressed. Spend time with your family, talk about your problems and find things that relax you.
Don’t forget to enjoy yourself during your bankruptcy. It’s easy to be stressed during this time. This stress may lead to something worse like depression, so do what you can to fight that from happening. While the process is tough, you are getting a chance to start over.
Chapter 7
If you have a co-debtor, consider the ramifications that filing a Chapter 7 bankruptcy will have. You can relieve yourself of any liability for debts that you may share with someone else through a Chapter 7 filing. However, the creditors could come after your co-signer and demand full payment for the debt.
Never take big cash advances from the credit cards that you own prior to filing for bankruptcy, even though you know that the debt will be erased. Not only is this fraud, but you could still be liable to repay the money at the end of the day.
In time you will leave the effects of bankruptcy behind you and resume your normal life. When creditors can look at your credit report and see that you have made an effort, over time, to pay on time, getting credit will become easier again. So begin saving your money and you will realize how much difference it makes when shopping for a home loan or car.
