Stress, anxiety and depression are emotions many people feel when they are faced with bankruptcy. These feelings can make it hard to make it through the day, and can leave people feeling stuck. As you can see, filing for bankruptcy does not mean life is over.
Don’t be reluctant to remind your lawyer about specific details he may not remember. You should not take for granted that your lawyer will remember every important detail that you have have told him earlier without a reminder. All information submitted to the court with your signature needs to be double checked.
After a bankruptcy, you may not be able to receive any credit cards. Since it is important that you work to rebuild your credit, you should instead think about applying for a secured card. This will show people that you are serious about getting your credit record back in order. In time, you might be granted unsecured credit again.
Prior to filing for bankruptcy, discover which assets cannot be seized. There are some assets that cannot be seized through bankruptcy, and the law lists those assets. It is important that you read this list before filing for bankruptcy, so that can find out whether or not your most prized possessions will be seized. If you neglect this important step, you might be blindsided when a possession that is important to you is taken to repay creditors.
You should never pay for your first consultation with a bankruptcy attorney. Make the most of this free consultation by asking lots of questions. You can meet with a few lawyers before deciding on one. Most lawyers provide a free initial consultation. You should make a final decision only once all of the questions or concerns are sufficiently attended to. It is not necessary to come to a decision immediately following the meeting. Consulting with several attorneys will also help you find someone you trust.
The two main kinds of bankruptcy are Chapter 7 and Chapter 13. Make sure you understand them so you know what is best for you. In Chapter 7 bankruptcy, your debts are all eliminated. Any debts that you owe to creditors will be wiped clean. If you file for Chapter 13 bankruptcy, however, you will enter into a 60 month repayment plan before your debts are completely dissolved. You need to determine which type of bankruptcy is right for you given your unique financial situation.
Don’t file for bankruptcy unless it’s absolutely necessary. Perhaps just consolidating some of your existing debt, could make them easier to manage. A bankruptcy filing takes a great deal of time, and it can be extremely stressful. It will also limit your ability to get credit for the next few years. So, consider bankruptcy only as a last resort when you have no other choice.
Look into filing Chapter 13 bankruptcy. If you currently have some income and don’t have more than $250k in debt, you can declare bankruptcy. You can keep personal possessions, as well as real estate, while paying into a debt consolidation system. The plan is usually for a term of three to five years, and a discharge will be granted at the end of that term. However, if you are unable to properly commit to the plan you agree to, your case can be dismissed.
There are circumstances where you are able to keep your car during a bankruptcy so be sure to ask your lawyer about possibly reducing the payments. You can often lower your payment using Chapter 7 bankruptcy. If you meet the criteria specific to your state, it may be a good option to consider.
If you have a co-debtor, consider the ramifications that filing a Chapter 7 bankruptcy will have. When filing Chapter 7, you are not longer liable for the debts that you and a co-debtor signed for. Although, your creditors may insist that the co-debtor pay off the entire debt.
Even if you are involved with Chapter 13 bankruptcy, it is still possible to get a mortgage or an automobile loan. It is much harder. Normally, the trustee assigned to your bankruptcy must approve any new loan. Document your budget to prove that you’re going to be able to make the payments. You will always have to let them know why this item needs to be purchased.
Do not forget to list each and every debt you have. If you don’t do this, your file could be delayed or dismissed. The most meaningless, innocuous finance or expenditure needs to be listed when you file a claim. Don’t forget about side jobs, loans you’ve taken out or vehicles that might count as assets.
With any luck, this piece has shown you that financial roadblocks are not necessarily the end of the world. Though it is very difficult, personal bankruptcy is not the end. Follow the advice in this article for help in controlling your debt and deciding if bankruptcy is right for you.