Filing for bankruptcy must not be taken lightly. Read the suggestions below to learn what you should expect, and the steps you will need to take as you think through this decision. Learn as much as you can beforehand.
It is essential that you are honest and forthright in the documentation you provide for your bankruptcy filings. Not only is hiding income and assets wrong, it is also a crime.
When it comes to informing your attorney about your case, don’t be fearful. Don’t just assume that the attorney will remember it automatically. All information submitted to the court with your signature needs to be double checked.
Credit Card
Once the bankruptcy is complete, you may find it difficult to receive unsecured credit. Look into getting a secured credit card in order to get back on your feet with building credit. Using a secured card not only helps to rebuild your credit, but it also keeps you from going more in debt with credit card bills. Once creditors see that you are making an effort to restore your credit, they may allow you to get an unsecured card in the future.
If you know people who have filed for bankruptcy, ask them who they would recommend rather than relying on Internet reviews or worse, just randomly picking someone out of the phone book. There are plenty of companies who know how to take advantage of people who seem desperate, and it’s important to be sure your bankruptcy can go smoothly; take your time and choose someone you can trust.
Learn of new laws prior to deciding to file for bankruptcy. These laws change regularly and you should stay up-to-date so you can make the best decisions. To stay up-to-date on these laws, check out your state’s government website.
Prior to choosing a bankruptcy attorney, seek a free consultation with at least three attorneys. Make sure that you meet with an actual lawyer and not an assistant or paralegal, as these people are not allowed to provide legal advice. Taking the time to compare lawyers will ensure that you get a person that you can be yourself around.
Remember to only file for bankruptcy if you need to. It might be possible to consolidate some of your debt instead. It is not a quick and easy process to file for bankruptcy. It will also limit your ability to get credit for the next few years. Personal bankruptcy should be undertaken as a last resort when no other workable options are available to you.
Chapter 7 Bankruptcy
Before you decide to file for Chapter 7 bankruptcy, you should consider what your bankruptcy might have on others, as your family and friends may be affected. Once you complete a Chapter 7 bankruptcy, you will be free of any responsibility of debt, which could put all responsibility on someone close to you. Creditors, however, will hold the co-signer liable for the entire balance of the debt.
It is still possible to get a mortgage or car loan, even if you are filing for Chapter 13 bankruptcy. It is a little more difficult, though. First, your trustee will have to approve the loan. Draw up a budget, demonstrating that you can afford the new loan payment. Also, you need to be ready to say why you’re going to need the item.
Don’t file for bankruptcy without knowing your rights. Occasionally, debt collectors will attempt to convince you that your debt isn’t eligible for bankruptcy. However, there are few debts that cannot be eliminated, like student loans and child support payments. If you know that a debt can definitely be bankrupted, yet the collector still harasses you, file a report with the attorney general in your state.
Bankruptcy can be overwhelming to most people, and can be quite stressful. To avoid getting too stressed, make sure you hire a reputable bankruptcy attorney. Don’t hire based solely on cost. Choosing a lawyer should be based on finding one with a proven track record who can give you the help that you need. Ask your friends, relations and acquaintances who have shared your experience to give you referrals to good lawyers. Try attending a hearing to find out how bankruptcy attorneys handle the situation.
Bankruptcy isn’t simple and immediate. Filing for bankruptcy is a very involved and precise process. Hopefully, with what you learned today, you learned what it means to file for bankruptcy and you can avoid being in this situation in the future.
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