Filing for bankruptcy is a very important decision and one that shouldn’t be taken lightly. Go over the advice in the following paragraphs to get an idea of what you’re in for, and to learn what you should know before you decide whether or not to file. Try to learn everything you can before making any decisions.
After filing for bankruptcy, you could have trouble acquiring unsecured credit. If this happens, instead you should turn your attention to secured credit cards. You can exhibit your desire to rebuild your credit this way. Eventually, you could be able to obtain unsecured credit.
It is important to understand clearly the benefits of a Chapter 7 or 13 bankruptcy. Learn the benefits and drawbacks of each type before deciding which is right for you. Ask your bankruptcy lawyer to clarify anything you don’t understand before making a final decision about which type of bankruptcy to file.
Visit web sites and read information to learn as much as possible about the topic of personal bankruptcy. The United States Department of Justice and American Bankruptcy Institute are two such places to look. The more you know, the more you’ll knwo that you’ve made a wise decision and the you’re making sure your bankruptcy goes as smooth as possible.
If you make more money than what you owe, filing for bankruptcy is not a good option. Remember that the record of your personal bankruptcy filing will be discernible on the report of your credit for as many as 10 years. For this reason, bankruptcy filing should not be taken lightly.
Speak with your attorney about ways you can keep your car. Filing for Chapter 7 can help to lower your monthly payments on possessions such as your vehicle, helping to ease your financial load. In order for this to be considered, your car loan must be one with high interest, you need a solid work history and the car should have been bought 910 days or more prior to you filing.
File when the time is right. When it comes to filing for bankruptcy, your timing is important. Sometimes you may want to wait to file and in other situations you may find it better to do it as soon as you can. Discuss your specific situation with a bankruptcy lawyer to find out when would be your best time to file.
Think through your decision to file for bankruptcy carefully before going ahead with it. You have other options available like consumer credit counselling services. Since your credit history will forever note the bankruptcy, you want to make sure that you have tried everything else before you take an action such as this, in order to minimize the effect it will have with regard to your credit history.
Decide right up front that you are not going to feel embarrassed or ashamed about needing to file bankruptcy. Going through the filing process often brings out the worst in people, causing them to feel a variety of negative emotions. Although dealing with a bankruptcy is stressful, try to focus on the positive. These difficult financial times can easily take their toll on anyone. One of the best ways to cope with the situation is to maintain a positive attitude.
Take a look at all of your financial options before filing for personal bankruptcy. One option to consider is credit counseling. There are even non-profit companies that may be able to help you. They can work with both you and your creditors to find a feasible way in which your debts can be paid off. Payments are then made to the creditor via the counseling service.
Exercise some caution in repaying your debts when you know a bankruptcy filing in your future. Check the bankruptcy laws in your state to make sure you have not done anything in the past year to make yourself ineligible to petition for bankruptcy. Before making important decisions in regards to your finances, be sure you understand the laws.
If you are feeling like you are seriously going to have to file for bankruptcy then do not clear out your savings. Unless there are no other options, your retirement funds should never be touched. Using your savings is necessary, but decimating it and leaving yourself dangling with no future financial security is not a good idea.
The first step to making your bankruptcy successful is to turn over a new leaf and decide to manage money better. Do not increase current debt or incur new debt prior to bankruptcy. The courts and your creditors will be looking at your current, as well as past, credit history when adjudicating your bankruptcy. You need to show the court that you have changed and are ready to act in a financially responsible manner.
Go to a bankruptcy lawyer for advice, instead of filing on your own. Your lawyer can determine if you eve need to file, and if you do, act as an advocate in court and make the process go more smoothly. Your attorney may also help you with any questions you may have, as well as assist you in completing the paperwork you need to complete.
If divorce is in your future, perhaps you should make an effort to resolve the situation before finances become a problem. Many people who divorce must immediately file bankruptcy because of unforeseen financial difficulties. A great way to avoid this is by not getting divorced.
Honesty is of utmost importance during your filing, even though it may be tempting to “pad” your answers a little. It is vital that you disclose all information about your assets and income so there are no delays or penalties, such as a court barring you from filing again later in the future.
When you have creditors hassling you about a delinquent account while you are in the midst of bankruptcy, you may be able to refer them to a phone service offered by your bankruptcy lawyer. If you receive a call from a debt collector, simply provide them with this phone number and any relevant information to prove that your bankruptcy has cleared your debt. Just be sure that they are a legitimate business to safe guard your personal information. This will prevent them from calling you in the future.
As you’ve read, bankruptcy isn’t as simple as it might sound. You must do a wide variety of things correctly. If you apply this advice, you are certain to be prepared when bankruptcy rears its ugly head.