There is hope for a better life after bankruptcy, no matter the unpleasantness that went before. The main purpose is to give yourself a fresh, new start in life. Read this article to find out how to use bankruptcy for a chance at financial rebirth.
Don’t ever pay a bankruptcy attorney for a consultation, and ask a lot of questions. Most attorneys offer free consultations, so meet with a number of them before you retain one. Make your decision after all of your questions have been answered. You don’t have to make your decision right after this consultation. You have lots of time for consulting with other lawyers.
When a bankruptcy is imminent, retain a lawyer immediately. Bankruptcy is a complex process, and you probably don’t know all the information that is required to navigate it. A specialized bankruptcy lawyer can ensure that you are handling your bankruptcy filing the right way.
Be sure you know what the difference between Chapter 13 and Chapter 7 bankruptcy is. Get a good grasp of the pluses and minuses each type of filing involves by researching both of them extensively. Ask your bankruptcy lawyer to clarify anything you don’t understand before making a final decision about which type of bankruptcy to file.
Be sure that bankruptcy really is your best option. Maybe you can just consolidate debt to make it simpler to deal with. Bankruptcy is a long process that can be stressful. You should be aware that there are some negative ramifications to it, like extreme damage to your credit score. This is why you must make sure bankruptcy is your last resort.
Make time to visit with family and friends during the bankruptcy process. Going through a bankruptcy is never easy. It takes time and a lot of people feel stressed and ashamed throughout this procedure. A lot of people hide away until the entire proceedings have been played out. However, this isolation will just make you feel worse, and it could cause you to be depressed. This is the reason that you need to take the time out to spend time with everyone you love despite what your financial situation is.
Lower Payments
Talk with your lawyer about getting lower payments for any car you wish to keep. Often, you can negotiate a lower payment through bankruptcy. For instance, you can get lower payments on you car if you purchased it before filing and took a loan with high interests on it.
Filing bankruptcy under Chapter 13 means you can still get a loan for a car or a mortgage. There are extra hoops to jump through. You will have to see your trustee and the approval for this new loan. Draw a budget up and show how you can pay the newer loan payment. It will also be necessary to show why a new purchase needs to be made.
Don’t wait till it’s too late to file for bankruptcy. Some folks ignore financial difficulties for a long time, and this can be disastrous. Yet you can have debtors come after you and potentially take your home if you are not handling your debts properly. You should call a good bankruptcy lawyer and ask for advice as soon as you find your debts have become completely unmanageable.
Make sure you know what you should be doing when you file for bankruptcy. There are some clauses within bankruptcy that could cause you upsets. If the regulations are not followed, your case may be subject to a dismissal order. Take time to research things related to personal bankruptcy before you move forward. This will ensure your bankruptcy will go smoothly.
Typically, people who have faced bankruptcy swear off credit cards. Although this may seem plausible, this actually isn’t doing them any good. In the future, you will almost certainly need credit to make major purchases, such as a house or a car, and your credit score will be dreadful if you haven’t used credit since your bankruptcy. Start by using just one credit card, and propel your credit in a positive direction.
Credit Report
After a few months have passed since your bankruptcy finished, go to the credit reporting agencies and get your credit report. Be sure to check your credit report for accuracy of closed accounts and discharged debts. If there are discrepancies, correct them immediately in order to you can start repairing your credit.
As you read in the beginning of this article, bankruptcy is not something anyone looks forward to. But, that does not mean that your post-bankruptcy life cannot be fantastic. Bankruptcy is not the end; by applying some or all of the tips in this article, you will make the process much smoother and your financial recovery that much faster.
