Unfortunately, the subject of bankruptcy is all too common these days. Most people cite the economy for having to file for bankruptcy. Prior to making the decision to file a petition, you need to have a thorough understanding of the topic so that you act in your own best interest. This article is going to give you that knowledge.
Ensure that you are providing genuine details when filing a bankruptcy petition, because honesty is the best policy when dealing with bankruptcy. Withholding or lying about certain information can seriously worsen your financial situation. It could lead to being unable to file for bankruptcy or even legal trouble.
Be aware that getting unsecured credit is going to be tough once you’ve gone through bankruptcy. If you find that to be the situation, consider requesting secured cards. When you do this, it shows your determination to fix your credit history. After using a secured card for a certain amount of time, you might be offered an unsecured card once again.
Be sure you have no other choice but to seek bankruptcy. Consolidating current debt could make it easier to manage. Declaring bankruptcy is a very involved process that can cause a good deal of anxiety. It will have a long-lasting effect of your future credit opportunities. Personal bankruptcy should be undertaken as a last resort when no other workable options are available to you.
Don’t automatically assume that bankruptcy is your only option. You may qualify for alternatives such as debt repayment plans or interest rate reductions. Ask your bankruptcy attorney about these options. If you are looking at foreclosure, think about a loan modification program. These plans allow you a longer pay off period by extending the term of the loan, reducing the rate of interest or forgiving late fees. Making arrangements with the creditors to make reasonable payments towards you debt is a much better plan than bankruptcy because the lender simply wants the loan repaid.
Before you decide to file for Chapter 7 bankruptcy, consider how it could affect other people on your credit accounts, such as family members or business partners. When filing Chapter 7, you are not legally responsible for the debts in your name. However, the creditors could come after your co-signer and demand full payment for the debt.
Car loans or mortgage loans are still a possibility when you have filed for Chapter 13. It is just tougher. You need to contact your trustee so you can get approved for a new loan. You will need to come up with a budget and show that this new loan payment schedule is doable. Be ready to justify the purchase that you need the loan for, too.
Consider all of your options before filing for bankruptcy. You should consider credit counseling. There are many non-profit debt counseling services available. They will work with your creditors to get your payments lowered and your interest lowered as wll. You pay them and then they pay the creditors.
Know that bankruptcy can be much better for your finances than missing payments or making late payments on debts. Although your credit will take a big hit, you can begin to repair it immediately after filing bankruptcy. The key to a bankruptcy is the fresh start you will get from it.
Two to three months following your bankruptcy hearing, get a copy of your credit score from the major reporting agencies. Remember that this report would be representing your closed credit accounts and your discharged debts. If there are discrepancies, correct them immediately in order to you can start repairing your credit.
You do not need to halt your plans to file simply because you have changed jobs. Your decision to file may still be justified. The timing of your bankruptcy filing can greatly affect the amount you will be required to repay. Repayment can be evaluated without new income if the filing is posted earlier.
Regardless of how terrible your situation is, when you choose to file for bankruptcy, always be honest. Lying concerning your financial situation will not help you out of this situation. In fact, it is against the law. If you lie when it comes to your assets and debts, you might end up going to prison.
Some lawyers utilize free phone service that creditors get referred to when trying to contact you about a debt you owe. You just provide the number, and they call to confirm that the debt is part of your bankruptcy. This will put an end to the collection phone calls.
When you go to find an attorney, seek those who have handled a large number of bankruptcy matters. There are lots of qualified attorneys from which to choose. While you may think that you should hire the least expensive attorney, experience is the most important criteria regardless of the attorney’s billing rate, so check their background and previous cases.
As noted in the beginning of the article, bankruptcy is a hot topic nowadays, mostly because of the state of the economy. To make sure the best decisions are being made in terms of bankruptcy, use this advice.
