Debt is something a lot of people have to deal with on a daily basis. It seems that they can never pay their bills down, and they’re constantly pursued by collection agencies and creditors. If this description applies to you, you may wish to think about filing for personal bankruptcy. Go over the tips presented in this article to figure out if bankruptcy is the best solution.
If you are faced with the choice of filing for bankruptcy or using your emergency fund or retirement accounts to pay creditors, opt to file for bankruptcy. You should make every effort to leave your retirement accounts untouched until your retire. You may have withdraw from your savings every now and then, but try to leave yourself some financial security for the future.
Always be honest and forthright when it comes to your bankruptcy petition. You must avoid the temptation to conceal any valuables, money or other assets from the courts. If they find that you have lied, you may be faced with fines, penalties or the inability to file in the future.
You might find it difficult to obtain an unsecured credit card or line after emerging from bankruptcy. If that is the case, you should try applying for one, or two secured cards. Having a credit card of any type will allow creditors to realize that you’re attempting to work in the right direction to repair your credit. Unsecured credit may be offered to you quicker than you think after doing so.
No good will come of trying to conceal your assets or your liabilities in the bankruptcy process; you want to be scrupulously honest when you declare bankruptcy. The person you choose to file with needs to know both the good and bad aspects of your finances. Divulge all of your information so that you and your lawyer can devise the best strategy for dealing with your situation.
Don’t pay to for an initial consultation with a bankruptcy attorney, and thoroughly question each candidate. Most lawyers provide a consultation for free, so consult with many of them before picking which one you want to hire. Make your decision after all of your questions have been answered. After your consultation, take your time to make your decision. So you have sufficient time to speak with a number of lawyers.
There are two types of bankruptcy filing, Chapter 7 and Chapter 13 so make sure you know the differences. Chapter 7 bankruptcy is intended to wipe out all outstanding debts. All of your financial ties to the people you owe money to will disappear. If you file for Chapter 13 bankruptcy, however, you will enter into a 60 month repayment plan before your debts are completely dissolved. Take the time to learn more about these different options so you can make the best decision possible.
Your most important concern is to protect your home. Bankruptcy doesn’t always mean you’ll lose your home. You could keep your home; it depends on your home’s value or if a second mortgage is on your home. If this is not the case, find out more about Homestead Exemptions you might qualify for if you meet certain financial requirements.
Make time to visit with family and friends during the bankruptcy process. The process for bankruptcy can be hard. At the end of the process, many people are left with feelings of shame and worthlessness. A lot of people hide away until the entire proceedings have been played out. This isn’t true though because when you isolate yourself you will just start to feel worse and may become depressed. For this reason, if you are undergoing personal bankruptcy proceedings, you must continue to live a normal life, spending time with your friends and relations.
Filing for bankruptcy is not the best choice if your monthly income is enough to cover your bills. While filing may seem simple and a way to get out of paying your debts, it does tremendous amounts of long-term harm to your credit report.
Once you clear the hurdle of filing for bankruptcy, live a little, but not too much. A lot of debtors usually get stressed when they file. That stress can lead to depression, if you don’t take the right steps in fighting it. Things will be sunnier after you take positive steps to move forward.
Chapter 7 Bankruptcy
Before you decide to file for Chapter 7 bankruptcy, consider how it could affect other people on your credit accounts, such as family members or business partners. Debts that involved a co-signer can be discharged in Chapter 7 bankruptcy. Although filing for bankruptcy excludes your from financial responsibility, co-signers will still be expected to pay the loan amount in full.
As you can now see, there is much information available that can help you through your bankruptcy. By approaching bankruptcy proceedings with a clear frame of mind, you can use the process as a valuable tool to help you rid yourself of debt and get on with your life.