If you are considering filing for bankruptcy, your life probably hasn’t been so great recently, but that doesn’t mean things can’t improve once you file. The point of bankruptcy is to have a clean slate and a fresh start. Learn how to make bankruptcy work for you, instead of allowing it to devastate your life.
Familiarize yourself with the bankruptcy code before you file. Laws are subject to change, and it’s important that you’re educating yourself about current code only. Review the state legislature web site or contact the state legislature office to keep abreast of changes in the law.
Select a bankruptcy attorney wisely. There are a lot of new, inexperienced bankruptcy attorneys. Ensure that the attorney you choose is experienced and has the proper license. Go online and look up the attorney’s record and read up on any reviews, as well as any pertinent background information.
Look at bankruptcy as a chance to mature and take responsibility for your personal finances. Often, with bankruptcy, come feelings of guilt, shame and worthlessness. Although dealing with a bankruptcy is stressful, try to focus on the positive. If you are filing for bankruptcy and you are thinking negatively about the situation, make an effort to stop that now.
If you meet certain requirements, you may be able to get a lower monthly payment on your financed vehicle. Most of the time Chapter 7 bankruptcy will allow your payments to be lowered. There are qualifications, such as the loan being high interest and a good work record for this option.
Chapter 13 Bankruptcy
You don’t necessarily need to have all of your debts released when you file for personal bankruptcy. Chapter 13 bankruptcy allows for you to consolidate your debts, repaying the ones that are most important in an affordable way. Chapter 13 bankruptcy allows those who have more steady income to manage their debt without the perceived irresponsibility of filing for Chapter 7 bankruptcy. Chapter 13 makes it possible for people to recover from overwhelming debts while paying a portion of the debt they owe to their creditors.
If you are seriously thinking of filing bankruptcy, make sure that you contact an attorney. Having a lawyer on your side is the best way to avoid mistakes and bad decisions. A specialized bankruptcy lawyer can ensure that you are handling your bankruptcy filing the right way.
Think about opening a few new credit lines for the purpose of rebuilding credit following bankruptcy. If you can not get a regular credit card get a secured one instead to build your credit. Use these sorts of cards with extreme caution because of the extraordinarily high rates they normally carry. Having a line of credit that you pay on regularly will show other creditors that you deserve their credit.
Filing bankruptcy doesn’t mean that you won’t have any more bills to pay at all, so make sure that you’re always keeping up with the payments. Some people assume that making only minimum payments is the easy route, but doing so can cause a person to become controlled by debt too easily.
Quickly decide to start being more fiscally responsible prior to filing. Don’t go on a spending spree or increase your debt right before you file. Both creditors and judges take a look at what you are doing now, as well as what you have done in the past. You should demonstrate through your current behavior that you are actively changing your personal financial habits.
Contrary to popular belief, you won’t necessarily lose your assets if you happen to file for bankruptcy. You can keep some personal property. This includes items, such as jewelry, clothes, household furnishings, electronics, etc. This depends on the laws in your state, the bankruptcy type for which you file, and your unique finance situation, but it may be possible to retain your home, car and other large assets.
Compile a list of the money your currently owe. This is what you will use when you file for bankruptcy, so make sure every debt you owe is on the list. Review your records to determine the precise amounts that you owe. Take your time during this process; don’t rush and make sure all of your figures are correct.
Do not do any asset transferring for the 12 months prior to filing bankruptcy. Blatantly attempting to hide assets can result in the dismissal of your case. Some assets are not counted by creditors, so they may be safe. Whatever the case, hiding assets is not acceptable, so don’t make any transfers until after your discharge.
Check into less drastic solutions prior to declaring bankruptcy. For example, consumer credit counseling services can often help you figure out a workable repayment plan with creditors. Sometimes you can negotiate a reduced payment, though you must strive to get it all in writing.
As mentioned earlier, the events that drive anyone to declaring financial bankruptcy are not a happy story. But, just because you ended up in this dark place does not mean that the sun cannot shine once more. By using the tips from the above article, you can turn bankruptcy into a positive turning point.
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