When a person needs to file for personal bankruptcy, it is not ever a happy moment. If you are contemplating filing for bankruptcy, it means that you are in a dire financial situation. Take heart, whether you choose to file bankruptcy or not, there are options available to help you get through your financial difficulties.
It is essential that you are honest and forthright in the documentation you provide for your bankruptcy filings. Do not try to shield some assets or income from your creditors. This can get you in serious trouble and prevent your bankruptcy petition altogether.
Instead of relying on random selections from the phone book or Internet, ask around and get personal recommendations. Bankruptcy attracts a lot of fly-by-night firms that take advantage of desperate people, and a word-of-mouth recommendation makes it more likely that your bankruptcy will go smoothly.
Never give up. When you file for personal bankruptcy, you may even be able to retrieve personal property that has been repossessed. For example you may be able to get your car, electronics and even jewelry returned to you. If the items were repossessed less than three months prior to your filing date, you may be able to recover them. Interview and research attorneys before choosing one to help you with your bankruptcy.
Speak to a bankruptcy attorney about what new laws may be going into effect before your bankruptcy filing. Bankruptcy laws are in constant flux, so just because you knew the law last year doesn’t mean that the laws will be the same this year. Your state will have a website to check, or a number you can call, to learn the latest changes in the bankruptcy laws.
Do not let bankruptcy consume you, make sure you make time for your friends and family. The bankruptcy process can be brutal. This long and stressful process can leave a person feeling guilt ridden, unworthy and ashamed. Avoidance of friends of family during the process is not uncommon. You shouldn’t do this, though, as staying away from the world can amplify any emotional issue you are having, and they could even morph into full-blown clinical depression. 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.
Bankruptcy should not be filed by anyone who makes more than their bills cost. It can seem like bankruptcy can be an easy way to avoid paying back your debts, however it leaves a serious mark in your credit report that can last between seven and ten years.
There are many ways to resolve financial difficulties other than bankruptcy, and you should investigate all of them first. There are many recouses available to help you lower your payments and get back on track. Various loan plans out there can be a lifesaver if you’re facing a foreclosure. Some lenders will make concessions rather than losing the money owed to bankruptcy. These concessions include waiving late fees, lowering interest rates, and changing the loan term. Most creditors will be willing to work out an option to avoid not getting paid at all.
If keeping your vehicle is of great concern, ask your lawyer if you can secure a payment modification. Chapter 7 usually can help payments be lowered. But, your car has to have been bought at least 910 days before you file. Also, it must come from a high interest loan and you have to have been consistently working.
As you can now see, you do not have to let bankruptcy consume your soul. You can use what you know to find the road to return from the brink of bankruptcy. Start using what you learned today and see how much of a change you can make in your life, so that you do not have to harm your credit history.