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 point of bankruptcy is to have a clean slate and a fresh start. Keep reading for ways to experience bankruptcy as a positive thing.
Try to find a bankruptcy attorney who is personally recommended, rather than off the Internet, or out of the yellow pages. There are so many dime-a-dozen companies out there who make it a practice of preying on financial desperation. You need to make sure your bankruptcy goes smoothly, so find someone you know you can trust.
Never give up. Filing for personal bankruptcy may possibly enable you to reclaim your personal property that have been repossessed, like your car, electronics and jewelry items. If the property you own has been repossessed under 90 days before the bankruptcy filing, you may still be able to get it back. A lawyer will be able to assist you with filing the paperwork to get the items back.
Learn of new laws prior to deciding to file for bankruptcy. The laws change a lot, so you need to look them up and have a better idea of how to properly approach the bankruptcy process. Check the website of your state’s legislation or get in contact with your local office to learn more about these important changes.
Seek a less serious option prior to filing for bankruptcy. One example would be that a consumer credit program for counseling if you have small debts. You should also try negotiating a payment plan with your creditors; make sure you get a written agreement of the new payment plans.
Find out if you can use Chapter 13 bankruptcy, as it may help you better than the other laws. If you have regular income and under $250K in unsecured debt, a Chapter 13 may be right for you. That way, you can hold onto your personal assets and pay back a portion of your debts pursuant to an approved plan. Typically, any plan you develop will last around 3-5 years. Afterwards, any remaining unsecured debts will be discharged. Remember that you must make every payment. Missing even one could cause the court to dismiss your case.
Think about all the choices available to you when you file for bankruptcy. Consult with a bankruptcy attorney to see if an interest rate reduction or debt repayment plan is an alternative to filing for bankruptcy. For example, if you are in talks of foreclosure, you could use a modified loan to overcome your debt. 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. Ultimately, creditors want their money, and many times repayment plans are preferable to a debtor that is bankrupt.
Once you clear the hurdle of filing for bankruptcy, live a little, but not too much. Filing is the most intensive step in the process, so afterwards it’s important to let go of some of your stress. That stress can lead to depression, if you don’t take the right steps in fighting it. Things will be sunnier after you take positive steps to move forward.
Act at the right time. Timing is very important when it comes to personal bankruptcy filings. In some situations it is best to file as soon as possible, but in other situations it is best to wait until after you’ve gotten through the worst of it. Speak with an attorney who specializes in bankruptcy to figure when is the best time to file, according to your situation.
Gain all the knowledge of personal bankruptcy that you can. There are a lot of pitfalls in the personal bankruptcy code that could lead to issues with your case. If you do not know bankruptcy law, your bankruptcy case could be dismissed. Spend some time learning about personal bankruptcy. Doing so will pave the way to an easier process.
Do not use credit cards for cash advances prior to filing a bankruptcy petition, as it can affect the dischargeability of the debt. That is considered fraudulent behavior, and you can still have to pay the credit card back, bankruptcy or no.
Do not hesitate or stall when determining if filing for bankruptcy is the correct choice for your life and situation. Filing for bankruptcy is a hard decision to make but if you wait too long, your situation will get worse. By talking to a professional, as soon as possible, they can give you some advice on things you can do before it all gets too complicated.
Realize that bankruptcy, ultimately, might be better for your credit than continuing to make late payments or miss payments on your debt. While bankruptcy may appear in your credit report, you could surely try to fix your damaged credit. One of the best benefits to bankruptcy is the promise of a fresh start.
When you file for bankruptcy, it doesn’t mean that you will lose your assets. You can keep your personal property. Items like clothes, electronics, household furnishings, and jewelry are included in that category. This will depend on your state’s laws, the type of bankruptcy you file for, and your financial situation, but you may be able to retain large assets like your home and car.
As stated in the above article, anytime someone is forced into bankruptcy is never a happy situation. Even though that is the case, you should not allow it to depress you in any way. Try using the tips in this article so you can make bankruptcy into the most positive experience possible.