The mere thought of bankruptcy is enough to strike fear into the hearts of people. Increasing debt, along with being unable to support a family can be an actual nightmare for some. If this sounds like you and you are experiencing these feelings right now, the advice here will be of help.
Don’t throw in the towel. When you file for bankruptcy you may be allowed to recover property like your car, electronics or jewelry that might have been repossessed. If the items were repossessed less than three months prior to your filing date, you may be able to recover them. A qualified bankruptcy attorney can walk you through the petition process.
You may have heard bankruptcy referred to differently, either as Chapter 7 or Chapter 13. Learn the differences between the two before filing. Should you choose Chapter 7, your total debt load will be erased. With very few exceptions, the connections between you and your creditors will be severed. Filing Chapter 13 differs by requiring you to agree to a 60 month plan to repay your debts before they are totally eliminated. You must know about the different bankruptcy types, and how each can affect you.
Do not forget to make quality time for friends and family members. Undergoing bankruptcy can be a difficult experience. It is long, stressful and makes people feel like losers. Some folks tend to stay in the shadows until their case has concluded. However, becoming a hermit will only increase feelings of self-doubt and could make you depressed. So, it is critical that you keep spending time with the ones you love, regardless of the current financial situation.
Do not forget to enjoy life a little once you get through the initial filing process. So many people become stressed when they file. That stress can lead to depression, if you don’t take the right steps in fighting it. Remember that your situation is going to improve after you file for bankruptcy.
It is important to understand your rights when you file for bankruptcy. Some debt collectors like to say that you cannot file for bankruptcy on these debts. Only a few debts are immune to bankruptcy. Taxes, student loans and child support would be the major ones. If the debt collector tries to tell you that your debts, which do not fall into those categories, cannot be bankrupted, take a note of it, look up the debt type, and report them to your state’s attorney general office.
It does not take much experience with bankruptcy to understand that the entire process can be extremely stressful. Engage a competent lawyer in order to avoid excess stress and keep everything on track. Don’t make your choice to retain a particular lawyer simply because they are the cheapest. You do need someone who is costly, just someone who is good at what they do. Ask your friends, relations and acquaintances who have shared your experience to give you referrals to good lawyers. You could even attend a court hearing to see how an attorney handles his case.
Avoid using bankruptcy as a last resort. It is quite common for people to linger on hoping that their financial difficulties will somehow resolve; however, this very rarely happens. Yet you can have debtors come after you and potentially take your home if you are not handling your debts properly. Consider all possible options before filing bankruptcy.
If you are going to declare bankruptcy, hire a lawyer first. A qualified attorney could give you advice that is necessary for filing and could represent you as you go to court making the process simpler. Your lawyer can also show you how to fill out the paperwork, file it properly and be there to answer any questions you may have.
Credit Reporting Agencies
After a few months have passed since your bankruptcy finished, go to the credit reporting agencies and get your credit report. Be sure to check your credit report for accuracy of closed accounts and discharged debts. Contact the credit reporting agencies if there is a discrepancy in order to rebuild your credit.
Those who are afraid of bankruptcy are entirely justified; it often can be a frightening experience. You might have been worried about it before, but this article can put those fears to rest. Use the bankruptcy information in this article to make your financial life yours again.