The path to bankruptcy is not normally a happy one, but your life can improve once the filing has occurred. The bankruptcy laws allow you to have a second chance at building your credit and meeting all your financial responsibilities. Keep reading to handle the bankruptcy process in a way that is a rebirth and not a financial Armageddon.
Be certain to gain a thorough understanding of personal bankruptcy by using online resources. The United States DOJ, along with a number of other bankruptcy institutes and attorneys specializing in bankruptcy can give you invaluable 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.
Try to make certain you are making the right choice prior to filing your petition. Look into credit counseling to see if it could help you work out of your debt without bankruptcy. Your credit score will be forever effected by bankruptcy, which is why you should do everything else in your power to resolve matters first.
If keeping your vehicle is of great concern, ask your lawyer if you can secure a payment modification. Sometimes, as part of the bankruptcy filing, your auto loan can be restructured so that you pay less each month. The vehicle must have been obtained more than 90 days before filing and be a loan with high interest. You must also have consistent work history.
You should never feel shame for needing to file for bankruptcy. It is possible for those going through the bankruptcy process to feel unworthy, guilty or ashamed. But, such emotions get you nowhere, and they can cause significant mental issues to emerge. If you want to cope with your bankruptcy filing successfully, you must maintain a positive point of view.
Don’t wait until the last minute to file bankruptcy. It is all too common for people to hope that their financial difficulties will disappear if they don’t give them any attention. It is too easy for debt to mount up and become uncontrollable, which could lead to loss of assets or wages. 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.
Before you decide to file, make yourself aware of the laws about bankruptcy. Here is one example, an individual who files for bankruptcy cannot transfer any assets for a year before the filing date. It is also illegal for someone who files for bankruptcy to drastically increase their debts on credit cards immediately before filing.
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 fraudulent practice is a demonstration of bad faith. Debts you incur this way will likely not be discharged in a bankruptcy, and you will still have to repay them.
Filing a claim doesn’t always result in losing possessions. When you file for bankruptcy, you are allowed to keep personal property. Some included items are: electronics, household furnishings, clothing and even jewelry. The laws of your state, the kind of bankruptcy you go for, and your finances will determine whether you will lose large assets like your car or your home.
If you pick up a new job shortly before you file for bankruptcy, don’t slow down your filing plans! It may still be a good idea to go ahead with the bankruptcy. The timing of filing is a huge factor. If you file before the new employment commences, your repayment options will be considered without this new wage figure being taken into consideration.
It is wise to reconsider filing for divorce if your financial situation is grim. Many people find themselves filing for bankruptcy after a divorce. Making sure that divorce is a good option is best.
Chapter 13
If, once you file Chapter 7 bankruptcy, it comes to light that you no longer qualify to receive the Homestead Exemption,it may be possible for you to do a Chapter 13 filing on top of your mortgage. Sometimes it is better to switch the whole Chapter 7 case to the Chapter 13 case. Speak with your attorney for advice on this.
When you hire a lawyer, find one who is experienced with bankruptcy cases. There are many bankruptcy lawyers available to pick from. The inexpensive lawyers will probably fail in the knowledge department. Avoid the temptation to jump on board.
If for some reason the bankruptcy case gets dismissed because there was a mistake, you are allowed to re-file. Generally though, there is only a window of 30 days after the first filing to refile after dismissal has occurred. You can avoid these errors by verifying all your information before it is submitted to the court.
As said previously, a situation leading to bankruptcy can be upsetting. It doesn’t have to be that way after bankruptcy. By embracing the information that has been provided here to you, you can take the negative connotation that surrounds bankruptcy and change it to a positive one.
