When a person needs to file for personal bankruptcy, it is not ever a happy moment. Bankruptcy can be ugly, embarrassing and a tough thing to talk about. You do not necessarily need to file for bankruptcy, there are other options to help you resolve your debt. This article will help you improve your financial situation.
When it comes to informing your attorney about your case, don’t be fearful. Chances are that you may have forgotten to tell them about certain specifics that may be important to your filing. Don’t be afraid to speak up, as it is your case and your future will be affected by its outcome.
You might experience trouble with getting unsecured credit after filing for bankruptcy. If this happens to you, think about applying for a couple of secured credit cards. This at least shows you are making an honest attempt at reestablishing your credit worthiness. When you have done well with secured cards for a while, you should be able to obtain an unsecured credit card.
Be completely honest whenever you file for personal bankruptcy. Hiding any asset or liability is a risk that will bite you in the end. Whomever you plan to use should know a lot about the finances that you have, both the good and the bad. Keeping secrets or trying to outsmart everyone is not a wise move.
Familiarize yourself with any new law before you make the final step to filing for bankruptcy. If you want to file for bankruptcy successfully, it’s important to review the latest applicable laws. They tend to change frequently. To learn how the law has changed recently, go online and check your state’s website, or call the state government and ask them.
Protect your home. It isn’t inevitable that you will lose your house when you file for bankruptcy. You might be able to keep your home, contingent on certain factors, such as your home decreasing in value or having a second mortgage. If you meet certain criteria, you may be able to retain ownership of your home even after filing for bankruptcy.
Consider filing a Chapter 13 bankruptcy. If you owe an amount under $250,000 and have a consistent income source, Chapter 13 may be right for you. Filing a Chapter 13 will let you keep personal items and real estate while you pay down your debt in a consolidation plan. It usually takes three to five years to fulfill this plan. When the time is up, you’re unsecured debts will be discharged. Remember that if you even miss one payment that’s due under this plan, the court could dismiss the whole case.
If you make more money than what you owe, filing for bankruptcy is not a good option. While bankruptcy may seem like an easy way out of having to pay back all of the debt that you owe, it is a stain that will remain on your credit report for seven to ten years.
Filing for Chapter 13 bankruptcy will not prevent auto loans or mortgages from being obtained. It is much harder. You will have to see your trustee and the approval for this new loan. You need to show them why and how you can handle paying back the new loan. Also, be sure you have a clear explanation as to why the item you are purchasing is absolutely necessary.
Be decisive at the correct moment in time. When it comes to filing for bankruptcy, your timing is important. For some people, filing right away is best, however for others, waiting a while is best. Speak to a bankruptcy lawyer to determine what the ideal timing is for your personal situation.
Prior to filing for bankruptcy, tell yourself that you cannot use the word “shame”. Often, with bankruptcy, come feelings of guilt, shame and worthlessness. Do not let these negative feelings influence your decision. Keeping an optimistic view as you deal with your financial woes is the most productive way of dealing with a bankruptcy.
If you are going to file for bankruptcy make sure you are prompt. Often, people try to act like they are not in financial straits. They imagine the issues will blow away, but they do not. Yet you can have debtors come after you and potentially take your home if you are not handling your debts properly. As soon as you’ve decided that you no longer have a handle on your debts, consult a bankruptcy lawyer to see if bankruptcy is right for you.
There is no need to rush to file for bankruptcy. Using the tips you just read, you can create a financial plan that will help you avert this terrible financial fate. Use the tips and advice you’ve learned here to change your habits and thereby change your financial future for the better.