Just thinking about bankruptcy can frighten people. From fears of growing debt to worrying that they’ll no longer be able to provide for their families, people have good reasons to be scared. If this scares you, or you are experiencing this living horror, then this advice will be of use to you.
Ask yourself if filing for bankruptcy is the right thing to do. You have other choices, including consumer credit counseling. Bankruptcy stays on your credit for a whole decade, so if there are less drastic options that will solve your credit problems, it is in your best interest to make use of them.
Avoid exhausting your savings or emptying your retirement accounts to pay off creditors if you are considering filing for bankruptcy. Don’t touch retirement accounts unless you don’t have a choice. Your savings accounts offer valuable financial security so try to leave them intact.
It is essential that you are honest and forthright in the documentation you provide for your bankruptcy filings. You may be tempted to try to hide income and personal assets from discovery, but doing so often leads to major complications, monetary penalties and the possibility that your case will be thrown out of court.
Do not hesitate to remind your lawyer of any details regarding your case. Never assume that they can remember all details without reminders. All information submitted to the court with your signature needs to be double checked.
Secured Card
Once the bankruptcy is complete, you may find it difficult to receive unsecured credit. If you are in this situation, applying for a secured card may be the answer. This at least shows you are making an honest attempt at reestablishing your credit worthiness. After using a secured card for a certain amount of time, you might be offered an unsecured card once again.
Keep at it! If you’ve had collateral, such as a car, electronics, or jewelry repossessed for non-payment, you might be able to recover the property when you file for bankruptcy. Filing for bankruptcy may allow you to regain ownership of recently repossessed property. Consult with a lawyer who can advise you on what you need to do to file a petition.
If bankruptcy is an option for you, secure the services of an attorney. The topic of bankruptcy is a complicated one and it is important that you know all about it. A bankruptcy attorney can help yo,u and make certain you can do things the right way.
Speak to a bankruptcy attorney about what new laws may be going into effect before your bankruptcy filing. Bankruptcy laws are in constant flux, so just because you knew the law last year doesn’t mean that the laws will be the same this year. To stay up-to-date on these laws, check out your state’s government website.
Consider other alternatives before filing for bankruptcy. For example, consumer credit counseling programs can help you by renegotiating your debts with your creditors into payments that you can afford. Also, you could try to get your payments lowered on your own. If you decide to do this, get a copy of anything you agree to.
Before filing a bankruptcy claim, make sure that your home is well protected. There are many options available to help protect you from losing your home. If your home has significantly depreciated in value or you’ve taken a second mortgage, it may be possible to retain possession of your home. Otherwise, try looking into house exemptions that may let you remain in the home if you meet certain financial threshold requirements.
Loved Ones
Spend time with loved ones. The whole process of filing for bankruptcy is hard. 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. Some people do not even want to speak with others until the bankruptcy is official. Isolating yourself from your loved ones can lead to feelings of depression. 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.
Don’t forget to enjoy your life once your finances get fixed. The filing process is extremely stressful for a lot of the people who go through it. The stress of dealing with bankruptcy could cause you to fall into a depression, unless you take steps to take care of yourself. Life will get better after you finally get this situation over with.
Before going through the Chapter 7 filing process, ensure that your co-debtors are abreast of any implications relating to this process. You may have your responsibility for your portion of the loan discharged under Chapter 7. However, anyone sharing the loan with you may be forced to pay back the entire amount for the amount in full, which spell financial disaster for them.
If you are in the midst of a Chapter 13 bankruptcy, it is possible to apply for certain loans. It is more difficult. Before you can take out a new loan, you will have to clear it with your trustee. Create a budget and prove that you will be able to afford it. You will also need to explain why it is necessary for you to take out the loan.
Many people are frightened by bankruptcy, and for good reason. Filing for bankruptcy can be a very stressful and fearful experience, especially if you don’t know what you’re doing. While you may have been frightened of bankruptcy in the past, you don’t need to be scared anymore. This article has armed you with information. Apply this advice to improve your situation for yourself and any loves ones.
