Whatever led you to declare bankruptcy is probably very sad, but that doesn’t mean that you can’t have a better life after bankruptcy. The whole point is to wipe the slate clean and have a new chance at life. Completing the bankruptcy process properly can lead to a new financial future.
Be certain you understand all you can about bankruptcy by researching reputable sites that offer good information. The United States Justice Department, the ABI (American Bankruptcy Institute), as well as the NABCA (National Assoc. Consumer Bankruptcy Attorneys) are excellent sources of information. You will find that the process of filing for personal bankruptcy is easier and less of a hassle with the more information on the subject you gather ahead of time.
When bankruptcy seem inevitable it is important not to use your retirement funds or emergency savings to pay creditors. Avoid ever touching retirement funds until you have no other choice. You may need to use some of your savings; however, you should not use all of your savings. Remember that you must safeguard your future financial security.
Keep with what you have decided to do. Filing a bankruptcy petition might facilitate the return of your property, including cards, electronics or other items that may have been repossessed. Any property repossessed within 90 days before filing bankruptcy, may be able to be returned to you. Talk with an attorney who can guide you through the process of filing a petition.
Seek a less serious option prior to filing for bankruptcy. For example, consumer credit counseling programs can help if your debt isn’t too large. You should also try negotiating a payment plan with your creditors; make sure you get a written agreement of the new payment plans.
Be certain that you can differentiate between Chapter 7 and Chapter 13 bankruptcy. Chapter 7 bankruptcy completely wipes out your debt. All the things that tie you to creditors will go away. Chapter 13 is different, though. This type of bankruptcy entails an agreement to pay off your debts for five years prior to wiping the slate clean. Take the time to learn more about these different options so you can make the best decision possible.
Before picking a bankruptcy lawyer, speak with more than one, since most offer a consultation for free. Make sure you meet with a licensed attorney rather than a paralegal or assistant, because it is illegal for these people to give legal advice. It will be important to work with a bankruptcy lawyer that you feel comfortable with; a little comparison shopping will help you find the right one.
It is imperative that you know for sure that bankruptcy is the option you need. Perhaps just consolidating some of your existing debt, could make them easier to manage. The bankruptcy process takes forever to finish and is very nerve-wracking. Credit will be much harder for you to come by after you file for bankruptcy. This is why you must ensure that bankruptcy is the only option left for you.
Consider Chapter 13 bankruptcy for your filing. If you have less than a quarter of a million dollars in debt that is unsecured and a regular income, you are eligible to file a Chapter 13. By filing this way, you can hold onto your home and property, while repaying debts through debt consolidation. The window for Chapter 13 repayments is typically 3-5 years. At the end of this time, any unsecured debt is discharged. Remember that you must make every payment. Missing even one could cause the court to dismiss your case.
Your trustee may be able to help you secure an auto loan or get a mortgage even though you have filed Chapter 13. But, it could be harder. Before you can take out a new loan, you will have to clear it with your trustee. Create a budget and prove that you will be able to afford it. Be ready to justify the purchase that you need the loan for, too.
Get the word “shame” out of your head when filing for bankruptcy. Often, with bankruptcy, come feelings of guilt, shame and worthlessness. Do not let these negative feelings influence your decision. To best deal with filing for bankruptcy, look for the positives in the situation.
It is important to be upfront with all your financial information when filing for bankruptcy. Overlooking any information can result in a delayed or rejected petition. Make sure that you add very small sums, even if you believe that they aren’t important. This may include secondary employments, vehicles you own and loans you still owe money on.
Long before you file any paperwork dealing with bankruptcy, your first step should be learning the rules and the process. Your case may be rife with issues due to pitfalls inherent in codes regarding personal bankruptcy. Mistakes can also have your case dismissed. Before you go ahead, devote a little time to research and the topic of personal bankruptcy. That way, you will have an easier road.
In conclusion, most circumstance that lead to bankruptcy are not positive. Even though that is the case, you should not allow it to depress you in any way. Bankruptcy is not the end. Follow the tips given here in order to make it a new beginning.