Although unhappy circumstances in your life might have led you to file for bankruptcy, your life post-bankruptcy can be much better. The benefit of filing for bankruptcy is that you have a new beginning. Keep reading to handle the bankruptcy process in a way that is a rebirth and not a financial Armageddon.
Generally bankruptcy is filed when a person is facing insurmountable debt. If this sounds like you, start familiarizing yourself with your state laws. Each state has their own bankruptcy laws. For example, whether or not you can keep your home, as well as what you need to do to keep it, is different for every state. Do not file before learning about the bankruptcy laws in your state.
Before undertaking the bankruptcy process, ensure you have made the correct decision. You can find services like counseling for credit that consumers can use. Your credit record will be harmed by a bankruptcy filing, and therefore prior to making such a decision, it is wise to investigate other options in order to minimize the damage you suffer.
When it gets time to think about bankruptcy, avoid using your retirement or savings to pay off the creditors or even make attempts to settle the debt. You should make every effort to leave your retirement accounts untouched until your retire. While dipping into your savings is likely to be necessary, avoid wiping it out completely to prevent leaving yourself with little financial security in the future.
Don’t be reluctant to remind your lawyer about specific details he may not remember. It is wrong to assume that your lawyer will remember every word you ever utter! Ultimately, this is your bankruptcy and your financial future, so never hesitate to advocate on your behalf.
It’s not uncommon to learn soon after bankruptcy that you are unable to get an unsecured credit card easily. Secured cards can be a great way to get started if this happens to you. This will show people that you are serious about getting your credit record back in order. After a certain time, you will then be able to acquire credit cards that are unsecured.
Prior to filing for bankruptcy, research which assets will remain exempt from creditors. The Bankruptcy Code provides a listing of the various asset types that are not included in the bankruptcy process. Prior to filing for bankruptcy, it is critical that you go over this list, so that you know if you can expect any of your most valuable possessions to be seized. Failure to do this could cause some ugly surprises down the road when you discover that your valuables must be seized.
Do not give up. When you file for bankruptcy you may be allowed to recover property like your car, electronics or jewelry that might have been repossessed. There is a chance that you can get back your property if it has been less than ninety days since repossession. Speak with a lawyer that will provide you with guidance for the entire thing.
Don’t ever pay a bankruptcy attorney for a consultation, and ask a lot of questions. Most attorneys offer free consultations, so meet with a number of them before you retain one. You should make a final decision only once all of the questions or concerns are sufficiently attended to. It’s isn’t necessary to make a choice right away. Take your time, and schedule consultations with more than one lawyer.
Always weigh your options carefully prior to deciding to dive head first into filing a bankruptcy claim. If you owe small amounts of money, you can join a counseling program or straighten your finances out by yourself. You might also be able to negotiate lower payments yourself, but make sure that you get written records of any debt modifications to which you agree.
As you can see, events that cause bankruptcy are a sad thing, indeed. The initial process might be difficult and draining, but there’s something special waiting on the other side. Bankruptcy is not the end. Follow the tips given here in order to make it a new beginning.