If you are considering filing for bankruptcy, your life probably hasn’t been so great recently, but that doesn’t mean things can’t improve once you file. With a clean slate, it is possible to start over both financially and personally. Learn how to make bankruptcy work for you, instead of allowing it to devastate your life.
Think through your decision to file for bankruptcy carefully before going ahead with it. You have other options, including consumer credit counseling help. Your credit score will be forever effected by bankruptcy, which is why you should do everything else in your power to resolve matters first.
Ensure that you are providing genuine details when filing a bankruptcy petition, because honesty is the best policy when dealing with bankruptcy. Not only is hiding income and assets wrong, it is also a crime.
It’s not uncommon to learn soon after bankruptcy that you are unable to get an unsecured credit card easily. A great way to rebuild your credit is to apply for a prepaid credit card. This will demonstrate that you’re seriously trying to restore your credit. If you pay your secured card off on time, you’ll eventually find that companies will start offering you unsecured credit.
If possible obtain a personal recommendation for a bankruptcy lawyer instead of randomly choosing one. Although you may find a good lawyer through an advertisement, you can simply find a much better lawyer if the lawyer is recommended to you by someone who has gone through the process and who has the inside track on the lawyer’s true capabilities.
You must be absolutely honest when filing for personal bankruptcy. If you try to hide any of your information, it will eventually surface and cause you problems. The professional that helps you file for bankruptcy has to have a complete and accurate picture of your financial condition. Put everything out on the table and craft a wise plan for handling the situation the best you can.
It is important to know how Chapter 7 filings differ from Chapter 13 filings. There is a wealth of information online about each type of bankruptcy and their respective pluses and minuses. Before making any decisions, discuss the information you have learned with your lawyer.
Consider filing for Chapter 13 bankruptcy. You are eligible for filing bankruptcy under Chapter 13 if you work and owe less than $250,000. This lets you keep any real estate and personal property while you repay all your debts through a consolidation program. Typically, this goes on for roughly three to five years, and once this time has expired, your unsecured debt is eliminated. Remember, though, that if you fail to make even one payment, the case will be thrown out and you’ll be right back where you started.
If your income exceeds your obligations, you should not seek bankruptcy protection. Filing for bankruptcy can really damage your credit in the long run, by staying on your report for up to ten years.
Don’t forget to enjoy yourself during your bankruptcy. It’s easy to be stressed during this time. Depression can ensue from the stress if action isn’t taken. Life will get better after you finally get this situation over with.
Whenever you file a petition for bankruptcy, do not leave out any information about your finances or assets. 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. Even if you think a sum is insignificant, add it into your documentation. That may include secondary jobs, any cars or trucks you want to be considered assets and any current loans.
If you are planning to file bankruptcy, avoid taking large cash advances from credit cards thinking that the debt will be erased. To do this would be considered fraud. Even after filing for bankruptcy, you might be forced to repay money gained in this manner.
It is not uncommon for people to declare that they will never again use credit cards after they declare bankruptcy. This is not wise because you need to rebuild a good credit file. Good credit is needed to make major purchases, such as those for homes and automobiles. However, if you don’t use credit, you will be unable to establish a good credit history, which is necessary in order to make those purchases. Start by using just one credit card, and propel your credit in a positive direction.
Write down a list of every debt you have. You will need this list when you file, so it is important for it to be as compete as possible. Double check all of your records so that you do not overlook anything. Take your time during this process; don’t rush and make sure all of your figures are correct.
If you must file for bankruptcy, think about hiring a bankruptcy lawyer. In addition to providing you with advice, they can appear in court for you and make the whole process easier. Your attorney will be able to answer any questions you may have and will fill out the appropriate forms to file bankruptcy.
A few months after bankruptcy is complete, get your credit report copies from the 3 credit reporting agencies. Look to see that the reports have accurately documented your discharge and other information. Address any mistakes or issues that you find so you can be on your way to better credit.
Even if your personal and financial situation is quite horrifying, it’s important that you be completely honest when discussing it with your lawyer. Lying about assets and debts is something you really should not do at all. This activity is illegal. Lying about your assets and debts could get you a lengthy prison stay.
As you read in the beginning of this article, bankruptcy is not something anyone looks forward to. It doesn’t have to be that way after bankruptcy. Actually, your life can become much better by following the advice presented here and moving forward past bankruptcy.