A lot of people are in debt right now. Their bills pile up higher while debt collectors and creditors keep their phones ringing constantly. If you are experiencing overwhelming stress due to your financial situation, you might want to think about filing personal bankruptcy. Read on to learn if bankruptcy is the best decision for you.
Be certain you are making the right choice before you file for bankruptcy. Look into other options, such as consumer credit counseling. Bankruptcy will be on your credit report and affect your credit score for many years to come, so it is a decision that should not be taken lightly. Try to use it as a last resort.
Avoid exhausting your savings or emptying your retirement accounts to pay off creditors if you are considering filing for bankruptcy. Avoid ever touching retirement funds until you have no other choice. While you may have to use a part of your savings, never completely wipe it out which would only leave you in worse financial shape in the future.
Ensure that you are providing genuine details when filing a bankruptcy petition, because honesty is the best policy when dealing with bankruptcy. Remember that if you hide your valuable assets or income from your bankruptcy trustee, you may risk a number of penalties and complications. Among these is the possibility that you could be blocked from ever filing again.
Unsecured Credit
Be aware that getting unsecured credit is going to be tough once you’ve gone through bankruptcy. If this is so, apply for a secured card or two. You can exhibit your desire to rebuild your credit this way. After a while, you may be able to get unsecured credit again.
Instead of relying on random selections from the phone book or Internet, ask around and get personal recommendations. Some companies just want to take advantage of you, so it is important that you have help from someone you trust.
Never give up. Bankruptcy might help you get back things you thought you’d lost and had repossessed, such as electronics, vehicles and jewelry. You may be able to recover repossessed property if the repossession occurred fewer than 90 days ago. Consult with a lawyer who is able to assist you in the filing of your petition.
Chapter 13 bankruptcy might be a good option, so don’t overlook it. Chapter 13 bankruptcy is a good choice for people whose unsecured debts amount to lower than $250,000 and who receive a regular income. You can keep personal possessions, as well as real estate, while paying into a debt consolidation system. These kinds of plans usually range across 3, 4 and 5 years. Once this is done, all your unsecured debt will get discharged. Remember that if you even miss one payment that’s due under this plan, the court could dismiss the whole case.
Personal Bankruptcy
Consider all options before filing for bankruptcy. Some alternatives to filing for personal bankruptcy include debt repayment plans, interest rate reduction plans, and debt consolidation. Talk with the personal bankruptcy lawyer to find out more. Loan modification plans on home loans are a great example of this. Your particular loan holders can provide a lot of assistance if you’re just willing to speak with them. You can negotiate lower rates, longer terms, and other means of repayment that may keep you from having to file a claim. Creditors would rather be repaid, however slowly, than have you declare bankruptcy.
Once you clear the hurdle of filing for bankruptcy, live a little, but not too much. Many people who undergo this process become way too stressed out. If you let the stress get to you you may get depressed if you’re not doing the proper things to fight it. While the process is tough, you are getting a chance to start over.
Pick the right time to file. Timing is very important when it comes to personal bankruptcy filings. Sometimes you may want to wait to file and in other situations you may find it better to do it as soon as you can. The professional advice of a bankruptcy lawyer can help you pin down the best time to file given your current financial state.
If you intend to file bankruptcy soon, you may want to discontinue paying all debts. Check the bankruptcy laws in your state to make sure you have not done anything in the past year to make yourself ineligible to petition for bankruptcy. Know the rules before you jump in feet first.
As you now know, there is help out there for you if you want to file for bankruptcy. If you deal with your stress in a positive way and make level-headed decisions, your bankruptcy filing will be a step in the right direction for a renewed financial future.
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