Lots of people look down upon bankruptcy, but when they are forced to claim it, they sing a different tune. Illness, extended unemployment and other financial hardships can result in a devastating financial situation. No matter how you found yourself looking at bankruptcy as an option, continue reading so that you can learn how to move forward.
Lots of people have to claim bankruptcy when their bills are larger than their income. When you get into this situation yourself, your first step is to familiarize yourself with your local bankruptcy regulations. Most states differ in their laws governing bankruptcy. Some states may protect you home, and some may not. Be sure to have some familiarity with the law in your jurisdiction.
Try to make certain you are making the right choice prior to filing your petition. Debt advisors are one of the many other avenues you can consider. Bankruptcy permanently affects your credit, so avoid filing until you have exhausted all of your other options.
Secured Card
After you have declared bankruptcy, you may have a hard time being approved for unsecured credit. If you find yourself in this situation, you may want to think about getting a secured card or two. 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.
Prior to filing for bankruptcy, discover which assets cannot be seized. The Bankruptcy Code lists assets considered exempt from being affected by bankruptcy. It’s crucial to read that list before filing to see which of your prized possessions can be seized. This will ensure that you do not have any surprises once you have filed bankruptcy.
Be honest when filing for bankruptcy. Don’t hide liabilities or assets, as they’ll come back and haunt you. When you file make sure whoever is handling the process is fully aware of each and every financial detail. Don’t hold back information and create a strategy so you can deal with what’s really happening.
Hire a lawyer if you plan on filing for bankruptcy. Bankruptcy is a complex process, and you probably don’t know all the information that is required to navigate it. A lawyer that specializes in bankruptcy can make sure you are following the correct procedures in your filing.
Chapter 7
There are two types of bankruptcy filing, Chapter 7 and Chapter 13 so make sure you know the differences. In Chapter 7 most of your outstanding accounts will essentially be erased. This includes creditors and your relationship with them will become no longer existent. Bankruptcy under the rules of Chapter 13, on the other hand, require you to work out a payment arrangement to pay back the agreed upon amounts. Both options have advantages and drawbacks, so do your research before deciding.
Many bankruptcy lawyers offer free consultations, so go to several before choosing one. Never settle for speaking with a paralegal or an assistant. They are not trained, nor allowed, to pass on legal advice. By shopping lawyers, you will be more likely to find one that makes you comfortable about the process.
Go ahead and file for personal bankruptcy as soon as you realize it is necessary. It is all too common for people to hope that their financial difficulties will disappear if they don’t give them any attention. All your personal debts will easily go haywire, building and collapsing very quickly. This often leads to foreclosures and garnishments. When you make the connection that your debt level is too high, contact an attorney that specializes in bankruptcy as soon as possible, to see what can be done.
Know the laws and guidelines about bankruptcy before you formally file. There are many pitfalls when it comes to the code pertaining to personal bankruptcy that can lead to a lot of unwanted issues. Making mistakes can have an effect on the outcome of your case. Before you go ahead, devote a little time to research and the topic of personal bankruptcy. This will help your process go smoother.
If you know that you are about to file for bankruptcy, don’t exploit the information asymmetry and get huge cash advances on your credit cards. This is fraud, and even if your other debts are discharged, you will have to pay the money back.
Filing for bankruptcy may damage your credit less than missing debt payments. It is true that a bankruptcy stays on your credit record for ten years, but you are freed to start improving your credit immediately. One of the best benefits to bankruptcy is the promise of a fresh start.
Consolidate a list of what you owe. This will be the basis for your bankruptcy filing, so make sure you include all the debts you are aware of. Remember to go through all of your records and try to determine the exact amount. Don’t rush through the process if you desire that the amounts get discharged the right way.
After considering all of your options, you may find that bankruptcy is your only choice. If changing circumstances have caused you to be in this position, you shouldn’t stress yourself out. Reading this article will result in you finding useful information.
