It is not uncommon these days for people to be drowning in debt. The hate answering the phone because many debt collectors call daily, and every trip to the mailbox means another stressful bill. If you find yourself in this type of financial trouble, you may want to think about filing for bankruptcy. Read the following paragraphs to decide if this path is one that you should take.
Be sure you’re doing what’s right before you file for bankruptcy. You can find services like counseling for credit that consumers can use. Your credit record will be harmed by a bankruptcy filing, and therefore prior to making such a decision, it is wise to investigate other options in order to minimize the damage you suffer.
Never shirk on the truth in your petition for bankruptcy. You might feel tempted to not declare certain assets in your bankruptcy in order to protect them from forfeiture, but if you’re found out, the process could take longer, or worse, you might be banned from filing for bankruptcy completely.
Personal Bankruptcy
Be sure to hire an attorney before you embark upon filing for personal bankruptcy. With all the ins and outs of bankruptcies, it can be hard to grasp all the knowledge. A personal bankruptcy attorney can help and guide you along through the bankruptcy process.
Familiarize yourself with the bankruptcy code before you file. It can be tough to keep up with them on your own, and because they change often, a bankruptcy attorney can help you keep track for the sake of your filing process. A qualified bankruptcy attorney is the best source for the latest information regarding the laws in your state.
Understand the differences between Chapter 7 and Chapter 13 bankruptcy. Take time to research this online and see the pros and cons for filing each one. If you’re really not sure how this all works after your research, meet with your lawyer and ask them prior to making a decision.
Investigate your other alternatives before you decide you have to go with bankruptcy. Sometimes consolidating your existing debts can make them more manageable. Filling for bankruptcy is a lengthy, stressful process. It will have a long-lasting effect of your future credit opportunities. Thus, you must make certain that bankruptcy really is the only viable solution to your problems.
Spend time with loved ones. Going through bankruptcy is a lot of stress. The long process can leave people stressed out and racked with guilt and shame over having their financial affairs laid out for everyone to see. Many people tend to hide until their process is completed. Washing yourself in self-pity will only make the situation worse and can leave you feeling very depressed. For this reason, if you are undergoing personal bankruptcy proceedings, you must continue to live a normal life, spending time with your friends and relations.
If you make more money than you need to pay your bills, you should not file for personal bankruptcy. Although bankruptcy may feel like a simple method of getting out of your large debt, it leaves a permanent mark on your credit history for up to 10 years.
Keep in mind that filing for Chapter 7 bankruptcy may affect other people than just you, including family members, and in some cases, business associates. Debts which you shared with another will not be your responsibility any longer if you file for personal bankruptcy under Chapter 7. However, your creditors will be able demand that your co-debtor pays the debt off in full.
Do not use the word “shame”, if you go bankrupt. You may need to get credit counseling or simply learn how to balance your budget. Although dealing with a bankruptcy is stressful, try to focus on the positive. If you are filing for bankruptcy and you are thinking negatively about the situation, make an effort to stop that now.
Filing for bankruptcy is hard on anyone, and can cause extreme amounts of stress. If you want to protect yourself from stress, see to it that you hire a good attorney. Do not let price be the only factor. Choosing a lawyer should be based on finding one with a proven track record who can give you the help that you need. Rely on word-of-mouth referrals from others who have filed for bankruptcy, check the BBB, and take advantage of free consultation offers. You could even attend a court hearing to see how an attorney handles his case.
You are not alone when you are debating filing for bankruptcy. If you deal with your stress in a positive way and make level-headed decisions, your bankruptcy filing will be a step in the right direction for a renewed financial future.
