For some, personal bankruptcy is a concept shrouded in mystery and fear. However, the fact is that it can be a helpful tool for those who need a fresh financial beginning. The key to approaching bankruptcy in a sensible manner is thorough knowledge of the subject. Apply the tips in this article to your personal circumstances, and you will be able to view bankruptcy in a new, rational light that may pave the way to brighter days for you and your family.
Find out the real reason you are filing for bankruptcy. What happened in your life that brought you to this place? What do you need to do to make sure that you can move on? What actions do you need to take before you can be sure that this will never happen again?
If you lose your job, or otherwise face a financial crisis after filing Chapter 13, contact your trustee immediately. If you don't pay your Chapter 13 payment on time, your trustee can request that your bankruptcy be dismissed. You may need to modify your Chapter 13 plan if, you are unable to pay the agreed-upon amount.
Make sure that you really need to file for bankruptcy. You may well be able to regain control over your debts by consolidating them. The bankruptcy process takes forever to finish and is very nerve-wracking. You should be aware that there are some negative ramifications to it, like extreme damage to your credit score. You only want to file for bankruptcy after you have exhausted your other options for dealing with your debts.
Consider Chapter 13 bankruptcy. If you have regular income and under 0K in unsecured debt, a Chapter 13 may be right for you. That kind of bankruptcy allows you to hold on to your personal things and real estate while repaying your debts with a plan to consolidate your debt. Expect to make payments for up to 5 years before your unsecured debts are discharged. Keep in mind that missed payments will trigger dismissal of your case.
If you are earning enough to cover your bills, don't file for bankruptcy. Though bankruptcy may appear to be a good way to escape your debts, it does affect your credit negatively for a fairly long time.
When you are thinking about filing bankruptcy, always be honest about everything. Do not think that hiding assets or income will help your case for bankruptcy. It could turn out that the court may just dismiss your petition, and you will not be able to file again to have those debts listed.
Make sure you are acting at the appropriate time. Filing at the right time can make things go much more smoothly. There are times when you should file as soon as you can, but in some other situations it may be best to wait for the worst to be over. The professional advice of a bankruptcy lawyer can help you pin down the best time to file given your current financial state.
Make sure to comply with the educational requirements for bankruptcy. You have to meet with an approved credit counselor within the six months before you file. You have to take an approved financial management course. If you don't take these courses in time, the court will dismiss your bankruptcy.
When you plan on filing for bankruptcy, you want to protect any assets you can legally protect. During the process, your creditors are likely to liquidate assets of yours whenever possible to fulfill your financial obligations to them. Some assets are untouchable though, so make sure you take the proper steps to protect them. Your retirement account and your home are both untouchable when it comes to liquidation.
Check all of your paperwork before filing, even if you used an attorney. While attorneys can be irreplaceable guides when it comes to personal bankruptcy, they often deal with multiple cases simultaneously. It's in your best interest, as its your financial future, to check all paperwork before it gets submitted.
Get a secured credit card after filing for Chapter 7 bankruptcy. A secured card requires you to put down money in order to open the account. However, if you use the card responsibly and pay it off every month, you can raise your credit score. So, within a few years of filing, your credit will be good enough to get you into an apartment or allow you to purchase a new vehicle.
You will most likely need to consult with a lawyer who specializes in the field of bankruptcy prior to filing. Be diligent in your research before you hire someone to represent you. Check all public records available on your attorney and make sure he or she is properly licensed and has excellent references. You should visit with several lawyers and examine what payment structures they offer based on what type of results. You should not hire anyone who makes you feel uncomfortable with them.
Have a credit report done before you file for bankruptcy. This will give you a list of debts that you have, and therefore give you a place to start when listing your debts for your bankruptcy filing. Make sure that there are no mistakes on it, and make sure to give it to your bankruptcy lawyer.
Realize that you can obtain credit even a short time after having a discharged bankruptcy. Many lenders and creditors will make smaller loans or amounts of credit to people who have recently filed bankruptcy. They actually view you as less of a risk than you might think. You are prohibited by law from filing another bankruptcy for a certain period of time, and you likely have few, if any, major debts to maintain payments for - both of which make you a less risky debtor in the eyes of some creditors.
It is quite common to view personal bankruptcy as something to be avoided at all costs. The truth for many consumers, however, is that it represents the best way to regain control over their financial futures. In order to understand the best way to use personal bankruptcy filing to your advantage is to acquire solid knowledge of the topic. Take the ideas in this piece to heart and you will have a better idea of how best to move forward regarding personal financial matters.
Orignal From: Tips For Using Bankruptcy To Your Advantage
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