Living with bankruptcy can be very difficult. When things are tough financially, your credit options are limited. Nonetheless, it is possible for you to continue getting the things you need (e.g. a home loan or an automobile loan) even if you have a very low credit score.
Most people end up filing for personal bankruptcy because they owe more than they make. Study the laws in you state to learn what you need to do and what your options are. Different states have different laws regarding bankruptcy. For instance, in some states you can keep your home and car, while other states prohibit this. Do not file before learning about the bankruptcy laws in your state.
Don’t try to hide anything if you are filing for bankruptcy, as this will hurt you in the long run. Your attorney and trustee should be privy to all information about your finances. Don’t hold anything back and formulate a smart strategy to deal with the reality you are facing.
Stay positive. 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 repossession occurred within 90 days from your filing date, it is possible that some of your property can be returned to you. Speak with your attorney about filing the correct petition to get your property back.
Chapter 13 Bankruptcy
Consider Chapter 13 bankruptcy. In most states, Chapter 13 bankruptcy law stipulates that you must have under $250,000 of unsecured debt and a steady income. That kind of bankruptcy allows you to hold on to your personal things and real estate while repaying your debts with a plan to consolidate your debt. This plan usually lasts from 3 to 5 years, after which, you will be discharged from all unsecured debt. Remember that you must make every payment. Missing even one could cause the court to dismiss your case.
Do not forget to make quality time for friends and family members. Filing for bankruptcy is a difficult process. It is long, full of stress and leaves individuals having feelings of shame and guilt. Many people don’t feel like socializing during the ordeal. But, keeping to yourself is likely to cause even greater sadness and despair. Spend time with your family, talk about your problems and find things that relax you.
If your earnings are higher than your expenses then filing for bankruptcy is a waste of time and money. Bankruptcy may appear like the easier way to avoid paying your old bills, but it is a huge mark on your credit score and remains there for up to 10 years.
Keep the concept of shame out of your head if you are contemplating bankruptcy. For many people, bankruptcy is a source of guilt and feelings of worthlessness. Learn to accept these feeling at face value– you can’t prevent yourself from feeling them, but you can stop them from controlling you. Keep a positive state of mind to deal with your tough financial situation.
Don’t wait till it’s too late to file for bankruptcy. What a lot of people do is ignore the fact that they are in a financial crisis and think that their debt is not going to catch up to them. Being in debt can quickly put you into very deep hole and if you do not rectify the situation fast, you could face wage garnishment or even worse, foreclosure. As soon as you discover your debt is getting too big, immediately get hold of a bankruptcy attorney so that you can talk to him or her about your options.
There are a lot of things to consider prior to filing for bankruptcy. Credit counseling may work for you. There are even non-profit companies that may be able to help you. They can negotiate with each of your creditors to work out payments that you can afford, along with reduced interest rates. They collect payments from your and then pay the creditors.
Never take big cash advances from the credit cards that you own prior to filing for bankruptcy, even though you know that the debt will be erased. This could be considered as fraud, and you may even be forced in paying all of it back to credit card companies.
It is important not to delay the process of determining whether or not you should file for bankruptcy. It might seem a little scary, but if you wait forever to act, you’ll just be waiting that much longer once you do ultimately file. Take responsibility to talk with a bankruptcy expert sooner, rather than later. The longer you wait, the more difficult the situation can become.
Although you have already filed for personal bankruptcy, don’t make the mistake of thinking that you’re now marked for life. Saving your money goes a long way to show your lenders concrete proof that you are serious about reestablishing your credit. Make an effort to keep your debts under control, and try for another loan when the time is right.