And it goes without saying that whatever brought you to bankruptcy was probably an unhappy experience; nonetheless, when your bankruptcy proceedings are over, you can move on to have a happier life. The whole point is to wipe the slate clean and have a new chance at life. By following the tips presented here, you can transform your life through personal bankruptcy.
It is important that you increase your knowledge on personal bankruptcy by reviewing websites that provide reliable information. The United States Department of Justice and American Bankruptcy Institute are two such places to look. Knowing as much as possible about bankruptcy gives you an advantage and will help you make the best decision possible.
Don’t hesitate to give your attorney a heads-up about something she has missed. Don’t assume that he will remember something you told him weeks ago. It is in your best interest to speak out. You are in control of the outcome of your bankruptcy.
Most bankruptcy lawyers offer a free consultation, so meet with several before you decide on one. Meet with the actual lawyer, not a paralegal or assistant, as they’re not allowed to give out legal advice. By shopping lawyers, you will be more likely to find one that makes you comfortable about the process.
Do what you can to keep your home. Filing for bankruptcy does not mean you have to lose your home. It may be possible to keep your home if the value has depreciated, or there is a second mortgage. Check to see if you pass the requirements necessary to file for a homestead exemption.
Think about all your options before pulling the trigger. There are many recouses available to help you lower your payments and get back on track. Loan modification plans can help if you are dealing with foreclosure. The lender may be willing to reduce interest rates, eliminate late charges or extend the life of the loan. Most creditors will be willing to work out an option to avoid not getting paid at all.
If you have fears that you will lose your car, ask your lawyer about the possibility of lowering your car payments. It is possible to get your car payment lowered if you file using Chapter 7. In order for this to succeed, you must have bought your car in excess of 910 days before filing, have a higher interest loan for it as well as a consistent work history.
Filing for Chapter 13 bankruptcy will not prevent auto loans or mortgages from being obtained. There will, however, be obstacles. Your trustee must approve any new loans such as this. To show that you are responsible and prepared for the undertaking of a new loan, flesh out a full budget. You will need to be able to explain why the purchase is necessary.
Don’t overly concern yourself with any negative feelings you are having. You may need to get credit counseling or simply learn how to balance your budget. Try not to give in to these feelings, as they are of no help to you and they can affect your emotional health. These difficult financial times can easily take their toll on anyone. One of the best ways to cope with the situation is to maintain a positive attitude.
It is important to be upfront with all your financial information when filing for bankruptcy. Omissions or errors may cause your case to take more time to resolve, or even be rejected entirely. You might think some asset or debt isn’t worth bothering with, but you should disclose it just to be on the safe side. Include all jobs, assets and loans.
Don’t take too long when trying to decide whether you want to file bankruptcy. Although it may be tough to admit you are in financial trouble, the more you wait the higher the debt becomes. Take responsibility to talk with a bankruptcy expert sooner, rather than later. The longer you wait, the more difficult the situation can become.
You will find many people, who have filed for bankruptcy, completely separate themselves from ever using credit again if possible. However, building a good credit history requires that you occasionally use credit. Without rebuilding your credit through the use of new credit, you will have trouble with future purchases that require good credit. The best way to help build your credit is to get one credit card and pay it off at the end of every billing cycle.
Write down a list of every debt you have. Only the debts you list on your bankruptcy filing will be discharged, so make sure all of them are included. Go over all your financial records and do not forget anything. Don’t be careless about this step, as discharge depends on submitting the correct numbers to the court.
As said previously, a situation leading to bankruptcy can be upsetting. However, what happens to your life after bankruptcy can have a happy beginning. If you use these tips, you may be able to use bankruptcy to make your life better going forward.