You’ve heard it before and you’ll hear it again–the economy is in rough shape. With a recession comes an inevitable increase in unemployment and personal debt levels. And these debts get to the point where people end up filing for bankruptcy. If you, a friend, or a loved one is in financial trouble, this article could help decide if bankruptcy is the right option.
Ask yourself if filing for bankruptcy is the right thing to do. You have other options, including consumer credit counseling help. Bankruptcy can leave your credit history permanently marked. Prior to doing this you need to be sure you try everything else first to get your credit history into shape and to lessen the impact.
Do not be afraid to remind your attorney of important specifics of your case. Just because you have told him something of importance that he will remember it. Don’t fear speaking up since it affects your case and future.
Do not attempt to conceal any assets when filing for bankruptcy because you may be penalized when they are discovered. All of your financial information, be it positive or negative, must be disclosed to those in charge of filing your case. They need to know it all. You are in this situation, now help them to give you the best assistance possible to deal with it. You do that by giving full disclosure and holding nothing back.
Before making the decision to file for bankruptcy, be sure you have considered alternative options. One example would be that a consumer credit program for counseling if you have small debts. You might also be able to negotiate lower payments yourself, but make sure that you get written records of any debt modifications to which you agree.
Before proceeding with your bankruptcy, it’s a good idea to start spending ample time with the people you care about most. The whole process of filing for bankruptcy is hard. It is long, hard and sometimes leaves people feeling guilty or ashamed. Many people decide to hide away from the world until the process is over. This isn’t true though because when you isolate yourself you will just start to feel worse and may become depressed. Therefore, it is important that you continue to spend quality time with your loved ones despite, in spite of your current financial situation.
It is possible to obtain new vehicle and home loans while a Chapter 13 case remains active. However, it won’t be as easy as it may have been to get one prior to the bankruptcy. Your trustee must approve any new loans. It is important to make a budget and prove that you are able to afford the payment. You will always have to let them know why this item needs to be purchased.
If you are filing for bankruptcy, it is imperative that you have a good understanding of your rights. Certain unscrupulous creditors will try to convince you that certain debts can’t be discharged in bankruptcy. Most loans can be discharged outside of certain things, like child support or loans you are paying back due to student lending. If you are told by a debt collector that your debts are not dischargeable, make a record of your conversation and report the individual to the proper state authorities.
Include your entire financial information when you file for bankruptcy. If you leave off even one tiny detail, you may end up in some serious trouble, but at the least your claim will be denied. You might think something is insignificant, but you should add it anyway. Current loans, second jobs and assets ought to be included.
Although it is tempting to toss out the idea of ever owning credit cards again, think again. This isn’t wise since you need to use credit to build credit. Credit cards are necessary for proving that you have gained financial stability and for garnering mortgage and auto loan approvals. You can rebuild your credit slowly, beginning with just one credit card.
Even the economy is gradually getting better, many people still do not have a job. There are some things that can be done to prevent filing for personal bankruptcy even for those who have no steady income. Hopefully, the information in this article has provided you with useful information that can help you stay out of bankruptcy. Also, try to remember that tomorrow provides you with a fresh start.