The Impact Of A Personal Bankruptcy On Your Credit

Filing for bankruptcy is a very important decision and one that shouldn’t be taken lightly. Read the ideas and advice in the following paragraphs so that you are aware of what to full expect and should think of prior to making such a crucial decision. It’s important to prepare yourself by learning ahead of time.

Ensure that you are providing genuine details when filing a bankruptcy petition, because honesty is the best policy when dealing with bankruptcy. Don’t hide income or assets from your lawyer or the bankruptcy trustee or you may find yourself in legal trouble.

Try to get a bankruptcy lawyer that your friends recommend, as opposed to someone that you find from the Internet or yellow pages. There are lots of unsavory companies and lawyers out there who prey on people who are in desperate straits. It is up to you to find someone that is trustworthy and can make the process go smoothly.

Be honest when filing for bankruptcy, because hiding liabilities or assets can only cause trouble to you. Wherever you file, that court has to be made aware of all details regarding your finances, positive and negative. Don’t withhold information, and create a smart way of coping with the reality of the situation.

Before making your decision to file for bankruptcy, double-check to see if other, less drastic options could make sense. For example, consumer credit counseling programs can help if your debt isn’t too large. You could even negotiate for lower payments. However, you should ensure that you always obtain a written record of all the changes to your debt that you’ve agreed to.

Personal Bankruptcy

If you make more money than you need to pay your bills, you should not file for personal bankruptcy. Remember that the record of your personal bankruptcy filing will be discernible on the report of your credit for as many as 10 years. For this reason, bankruptcy filing should not be taken lightly.

Consider all options before filing for bankruptcy. Talk to a bankruptcy lawyer to see if a debt repayment plan or reduction in interest rates is a viable option for you instead of bankruptcy. A plan that can be useful when foreclosure is looming is a loan modification. These plans allow you a longer pay off period by extending the term of the loan, reducing the rate of interest or forgiving late fees. Creditors want their money. Often, they are willing to work out repayment plans with you in order to get it.

If you are worried about your car being repossessed, consult your attorney about trying to get the monthly payment lowered. It is possible to get your car payment lowered if you file using Chapter 7. You must have bought the car 910 or more days before you filed, the loan must have a high interest rate, and you have to have a secure and steady working history in order for that to work.

If you are moving forward with a Chapter 7 bankruptcy, you need to learn how that can negatively affect anyone who shares loans with you. You may have your responsibility for your portion of the loan discharged under Chapter 7. So, in short, if you file bankruptcy, but they do not, they will be held completely responsible for your joint actions.

Timing is everything. When filing for personal bankruptcy, it is very important that you act at the correct time. In some cases, it is better to file immediately, while other situations benefit from trying to get certain finances in better shape before filing. A lawyer is in the best position to evaluate your case and figure out when you should file for bankruptcy.

As you can probably see, filing bankruptcy does not happen quickly or easily. Many steps have to be taken, and all of them must be performed properly. Keep this article’s advice in mind and you will probably stand a better chance of laying all the groundwork for your own bankruptcy properly.

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