Just the thought of bankruptcy creeping up on you, can make you fearful to say the least. Ever increasing debt, along with the difficulty of supporting a family is very frightening for some people. If these circumstances sound familiar, you stand to benefit from the tips that follow.
Ask yourself if filing for bankruptcy is truly your best option. Alternatives do exist, including consumer credit counseling. Bankruptcy permanently affects your credit, so avoid filing until you have exhausted all of your other options.
If filing bankruptcy is in your future, don’t waste any savings you may have attempting to pay off your debts. Retirement funds should be avoided at all costs. 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 afraid to remind your lawyer about important aspects of your case. Never assume that they can remember all details without reminders. It’s your financial future that is in his hands; don’t hesitate to speak up.
Prior to filing for bankruptcy, determine which assets, if any, are exempt from being seized. The kinds of assets which may be exempted during bankruptcy proceedings are listed in the Bankruptcy Code. It is important that you read this list before filing for bankruptcy, so that can find out whether or not your most prized possessions will be seized. This will ensure that you do not have any surprises once you have filed bankruptcy.
Chapter 13
Research Chapter 13 bankruptcy, and see if it might be right for you. If your total debt is under $250,000 and you have consistent income, Chapter 13 will be available to you. This lets you keep any real estate and personal property while you repay all your debts through a consolidation program. The plan is usually for a term of three to five years, and a discharge will be granted at the end of that term. Remember, though, that if you fail to make even one payment, the case will be thrown out and you’ll be right back where you started.
While going through this process, spend more time with friends and family. Going through a bankruptcy can be an excruciating experience. Not only is the process long, but it can be stressful, and many people feel ashamed when they do it. It can be hard to face the world while the bankruptcy process is taking place. However, self imposed isolation will only make you feel even worse about the process and could even lead to depression. Remember that it is not your families fault for your financial hardships and use this time to pull together and be strong.
Because of the comes from bankruptcy, you may feel overwhelmed and stressed. By hiring a competent attorney, you can alleviate some of that stress. Don’t hire based solely on cost. Hire the best attorney you can afford, not the one who charges the most. Ask for referrals from folks who have filed and check reputations with the BBB. You can attend court hearings if you want to see a prospective attorney in action.
Create a list of all of your finances before filing for bankruptcy. You can delay your bankruptcy process if you do not add in all important information. No sum is too small to be included; err on the side of caution and include everything. This might take the form of odd jobs, extra cars and outstanding personal loans.
Prior to filing, do not use your credit card to get a cash advance, knowing your debts will be eliminated. Not only is this fraud, but you could end up having to pay back the money, even once you have filed for bankruptcy.
Don’t drag your feet figuring out if bankruptcy is the right thing to do. It can be hard to ask for help but it’s not recommended for you to get further into debt. Speaking with a professional in a timely manner will allow you to receive sound advice that can help you before things get out of hand.
Credit History
Keep in mind though that personal bankruptcy might prove a wiser choice for your credit history than keeping making late payments. Bankruptcy can be seen on your credit history for 10 years, but you can begin repairing the damage immediately. One of the nicest things about bankruptcy is that it gives you a fairly fresh start.
Many people are frightened by bankruptcy, and for good reason. Filing for bankruptcy can be a very stressful and fearful experience, especially if you don’t know what you’re doing. Though the fear may be great, you can alleviate some of that with this article. Use the bankruptcy information in this article to make your financial life yours again.
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