Learn from your mistakes and vow to be more financially responsible after filing for personal bankruptcy. Maybe what you need is a fresh start. You can find this by filing a bankruptcy claim. This article will show you how you can make the best of bankruptcy rather than dwelling on the circumstances that got you there in the first place.
Most people end up filing for personal bankruptcy because they owe more than they make. If this describes your situation, it makes sense to become familiar with relevant laws. Each state has its own set of rules regarding bankruptcy. For instance, in some states, you can’t lose your home to bankruptcy, while in other states, you can. Familiarize yourself with the bankruptcy laws of your state prior to filing.
Make certain that you comprehend everything regarding personal bankruptcy by studying online. The United States Department of Justice, NACBA, and American Bankruptcy Institute websites are all great places to go for up-to-date information. By being well armed with the correct knowledge, you can be certain of the decision that you have made. Additionally, you will understand the processes necessary to conduct your personal bankruptcy matters in a smooth manner.
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. You can exhibit your desire to rebuild your credit this way. Once creditors see that you are making an effort to restore your credit, they may allow you to get an unsecured card in the future.
When looking for a lawyer to handle your bankruptcy claim, the best way to go is off of a personal recommendation instead of simply flipping through the phone book. There are a number of companies who may take advantage of your situation, so always work with someone that is trustworthy.
Do not give up. Filing for bankruptcy may allow you to get back property, such as an auto, jewelry, or electronics, that you may have had repossessed. If the property you own has been repossessed under 90 days before the bankruptcy filing, you may still be able to get it back. Get the advice of a qualified attorney who can advise you about ways to accomplish this.
Weigh all of your options before declaring bankruptcy. For example, there are credit counseling services that can help you to deal with smaller amounts of debt. You can also talk to creditors and ask them to lower payments, but be sure to get any debt agreements in writing.
Always protect your house. Filing for bankruptcy does not guarantee that you will lose your house. It may be possible to keep your home if the value has depreciated, or there is a second mortgage. If you meet certain criteria, you may be able to retain ownership of your home even after filing for bankruptcy.
Know and understand the difference between filing for Chapter 7 bankruptcy versus Chapter 13 bankruptcy. Research them online to see the positive and negative aspects of each one. If you don’t understand the information you researched, consult with your attorney about the details before you decide which type of bankruptcy you want to file.
Don’t file for bankruptcy if it is not completely necessary. Consider whether debt consolidation may be a more viable alternative. Declaring bankruptcy is a very involved process that can cause a good deal of anxiety. You should be aware that there are some negative ramifications to it, like extreme damage to your credit score. Therefore, you need to be sure that you really have no other option than to file for bankruptcy.
Chapter 13 Bankruptcy
Find out if you can use Chapter 13 bankruptcy, as it may help you better than the other laws. If you have a regular source of income and less than $250,000 in unsecured debt, you can file for Chapter 13 bankruptcy. Not only can you repay your debts through consolidation, personal property can be kept, as well as real estate. The length of the plan is generally up to five years, and when this is over, you will be free of unsecured debt. Remember that you must make every payment. Missing even one could cause the court to dismiss your case.
As stated in the above article, anytime someone is forced into bankruptcy is never a happy situation. However, the story that gets written after bankruptcy does not have to be depressing too. Follow the advice from this article, and use personal bankruptcy to get your fresh start.