Although bankruptcy causes stress, it can help financially. On one side, you will need to handle a lot of people looking into your personal finances. On the other, however, after the bankruptcy has been discharged, you can get a fresh start and begin to re-build your credit. The article below discusses some tips to make bankruptcy less painful.
As bankruptcy appears on the horizon, don’t take your savings or retirement accounts to try to pay off all your bills. Unless there are no other options, your retirement funds should never be touched. If you have to use a portion of your savings, make sure that you save some to ensure that you are financially secure in the future.
The best way to build your credit up after a bankruptcy is making all your payments on time. If this happens, instead you should turn your attention to secured credit cards. Using a secured card not only helps to rebuild your credit, but it also keeps you from going more in debt with credit card bills. In time, you might be granted unsecured credit again.
Be brutally honest when you file for bankruptcy, as hiding assets or liabilities, will only come back to haunt you. The professional that helps you file for bankruptcy has to have a complete and accurate picture of your financial condition. Divulge all of your information so that you and your lawyer can devise the best strategy for dealing with your situation.
Don’t pay for an attorney consultation and ask him or her anything you want to know. Nearly all attorneys offer free initial consultations, so you should be able to meet with a few before you make a final hiring decision. Therefore consult with different lawyers and get a feel for them, then decide which one suits your needs There is no need to feel rushed to decide to file after you talk with your bankruptcy lawyer. You can take as much time as you need to meet with different lawyers.
Learn and gain a firm grasp of the differences in applying for Chapter 7 bankruptcies versus Chapter 13 bankruptcies. Take the time to find out about each one online, and look at the advantages and disadvantages of each. Go to a specialized lawyer to ask your questions and get some useful advice on what to do.
You can take out a mortgage or car loan while filing Chapter 13 bankruptcy. However, it will be a longer and more arduous task. Your trustee must approve any new loans such as this. Draw up a budget, demonstrating that you can afford the new loan payment. The odds are also good that you will be asked exactly why you’re purchasing a new item. Make sure you have a good reason.
Timing is everything. They say timing is everything, and this rings true when filing for bankruptcy. In some cases, it is better to file immediately, while other situations benefit from trying to get certain finances in better shape before filing. Speak with a bankruptcy lawyer to see when is the best time for you to file bankruptcy.
Do not pay off debts blindly before you file a personal bankruptcy. Bankruptcy laws generally don’t cover situations which occurred within a short time frame prior to filing, such as the previous 90 days worth of credit card debt. Before making any final decision concerning your finances, you should be educated on the rules of bankruptcy.
When it comes to filing for personal bankruptcy, there are good things and bad things. It doesn’t matter why you have to file, but you must be properly educated. These tips can make dealing with bankruptcy easier. Use these tips and you’ll see how they make you feel better about dealing with the processs.