Anytime you are faced with the prospects of filing for bankruptcy, it is not a good situation, but there is some light at the end of the tunnel when you get through this process. You will be able to have a fresh start after all is said and done. By following the tips presented here, you can transform your life through personal bankruptcy.
Once a person’s debts outstrip his or her ability to repay them, bankruptcy may be the only option left. If this is happening to you, then learn about the laws where you live. Most states differ in their laws governing bankruptcy. For instance, in some states you can keep your home and car, while other states prohibit this. It is important to understand the laws in your state before filing for bankruptcy.
It’s not uncommon to learn soon after bankruptcy that you are unable to get an unsecured credit card easily. Since it is important that you work to rebuild your credit, you should instead think about applying for a secured card. This will allow you to start building a good credit history while minimizing the bank’s risk. It will take time, but when creditors see a pattern that satisfies their need to see your good faith with payments, you will then be able to apply for unsecured cards.
Do not give up. You can often have property returned to you. Autos, jewelry and even electronics that have been repossessed, could be returned. You may be able to get your property back if fewer than 90 days have passed between the repossession and are filing for bankruptcy. Discuss your options with a good lawyer who can help you with the filing of your bankruptcy petition.
Don’t ever pay a bankruptcy attorney for a consultation, and ask a lot of questions. When you arrive at a consultation ask plenty of questions. You should also seek free consultations from several attorneys prior to choosing one. Don’t hire an attorney who fails to address all your concerns and questions. It is not necessary to make a final decision right away. You can take your time and check out several attorneys before making your final selection.
Learn the newest bankruptcy laws before filing. Laws are subject to change, and it’s important that you’re educating yourself about current code only. To know what these changes are, go to your state’s website or contact the legislative offices.
Before declaring bankruptcy, ensure that all other options have been considered. For example, if your debt is small, try a type of consumer counseling program. You can also talk to creditors and ask them to lower payments, but be sure to get any debt agreements in writing.
Chapter 7
You need to educate yourself on the differences between Chapter 7 and Chapter 13. Should you choose Chapter 7, your total debt load will be erased. Any ties that you have with creditors will be dissolved. But, with Chapter 13, you will be in repayment plan for about 5 years prior to any debts you have being totally dissolved. In order to choose the right bankruptcy option, you need to know the differences between these kinds of personal bankruptcy filings.
Be sure you know what the difference between Chapter 13 and Chapter 7 bankruptcy is. There is a wealth of information online about each type of bankruptcy and their respective pluses and minuses. If something doesn’t make sense to you, go over it with your lawyer prior to choosing which one to file.
Spend time with friends and family to keep your stress levels to a minimum through the bankruptcy filing process. The whole process of filing for bankruptcy is hard. It can take a long time, take a great emotional toll and cause people to feel embarrassed and defeated. It is not uncommon for a person to feel the need to pull away from loved ones during the process. This isn’t true though because when you isolate yourself you will just start to feel worse and may become depressed. Make it a point to catch yourself if you feel yourself pulling away from others. Tell others that you would like to do some enjoyable things together while you go through bankruptcy process, then do it.
As said previously, a situation leading to bankruptcy can be upsetting. However, once this chapter is written it is done and you can begin to start fresh. Follow the advice from this article, and use personal bankruptcy to get your fresh start.
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