Any situation leading to bankruptcy may not be happy, but your life can improve afterward. The whole point is to wipe the slate clean and have a new chance at life. Completing the bankruptcy process properly can lead to a new financial future.
Many people find that they must file for bankruptcy protection because they have more debt than they can afford to repay. When you get into this situation yourself, your first step is to familiarize yourself with your local bankruptcy regulations. Each state has their own bankruptcy laws. For instance, in some states you can keep your home and car, while other states prohibit this. Become acquainted with local bankruptcy laws before filing.
Check the accuracy of all information before it is filed. Chances are that you may have forgotten to tell them about certain specifics that may be important to your filing. Don’t fear speaking up since it affects your case and future.
Once the bankruptcy is complete, you may find it difficult to receive unsecured credit. In this event, you should attempt to apply for a secured card or two. This will show other people that you’re serious when it comes to having your credit record in order. After a certain time, you will then be able to acquire credit cards that are unsecured.
Be honest when filing for bankruptcy, because hiding liabilities or assets can only cause trouble to you. The person you choose to file with needs to know both the good and bad aspects of your finances. Never hide anything, and make sure you come up with a well devised plan for dealing with bankruptcy.
Don’t pay for an attorney consultation and ask him or her anything you want to know. Free consultations are standard practice among bankruptcy lawyers, so interview multiple candidates before making a final decision. Don’t hire an attorney who fails to address all your concerns and questions. You need not decide right away. You can take your time and check out several attorneys before making your final selection.
Before filing for bankruptcy, determine whether Chapter 13 or Chapter 7 is appropriate for your financial situation. Chapter 7 involves the elimination of all of your debt. This includes creditors and your relationship with them will become no longer existent. With a Chapter 13 bankruptcy, you will have to make payments for 5 years before the debts are forgiven. You must know about the different bankruptcy types, and how each can affect you.
Protect your house. Filing for bankruptcy will not always result in losing your home. Check your home’s current value to see if it has gained equity and get your first and second mortgage papers together. There are other options such as a homestead exemption which offers you a chance to remain in your home, depending on whether or not you meed certain financial conditions.
Chapter 7 Bankruptcy
Take into consideration all the ramifications of a Chapter 7 bankruptcy. Filing for this can impact any co-debtors, such as friends or family. Once you complete a Chapter 7 bankruptcy, you will be free of any responsibility of debt, which could put all responsibility on someone close to you. However, the creditors could come after your co-signer and demand full payment for the debt.
Before you decide to file, make yourself aware of the laws about bankruptcy. There are often laws prohibiting the transfer of money from the filer for a certain period preceding the bankruptcy filing. Also, you must never incur significant new obligations must prior to filing for bankruptcy.
Some people don’t know that bankruptcy can actually help your credit more than making late or no payments to your creditors. While bankruptcy will show up in you credit file for the next 10 years, you can begin the process of making your credit situation better right away. A great feature of bankruptcy is its ability to provide consumers with a clean financial slate.
Once you decide to file, it is important to act in a more financially responsible manner. Avoid incurring new obligations or allowing existing debt to grow in advance of your bankruptcy. Judges and bankruptcy trustees take your repayment history into account when deciding the terms of your bankruptcy. Even though you may have found yourself in a bind, you want to show them that you are trying to make serious efforts to stabilize your finances.
Remember that just because you have filed for personal bankruptcy it will not cause you to lose everything you own. Most of the time, you retain your personal possessions. In other words, your clothes, your television, your computer, your furniture, your jewelry and other household items are safe. It will be dependent on your own personal circumstances and the laws in your state, but you might also be able to keep your house and care.
When a bankruptcy becomes a possibility, you should look at retaining a lawyer. In addition to providing you with advice, they can appear in court for you and make the whole process easier. They can also help to unravel the complexities of the paperwork and give you any further information you need.
Select a bankruptcy attorney wisely. This kind of law is usually where inexperienced attorney’s reside. Sort through your different options to find an experienced lawyer who has all the necessary credentials. Use the Internet to look at lawyer’s disciplinary records, background, and client ratings.
Once a few months have passed after your bankruptcy, contact the three major credit reporting agencies and request copies of your report. You want to see an accurate record of the closure of your accounts and the discharge of your debts. Resolve any problems immediately so you can build up your credit score as quickly as possible.
In conclusion, most circumstance that lead to bankruptcy are not positive. However, once this chapter is written it is done and you can begin to start fresh. Using the advice you have found here, bankruptcy can be the beginning of a new, exciting chapter in your life!