Things You Can Do To Pick Yourself Up After Bankruptcy

Any situation leading to bankruptcy may not be happy, but your life can improve afterward. The point of bankruptcy is to have a clean slate and a fresh start. Keep reading for ways to experience bankruptcy as a positive thing.

Millions of Americans file for bankruptcy each year because they can not pay their bills. If this is your case, you should do some research about bankruptcy laws in your state. There are greatly varying laws concerning bankruptcy, so it is important to make sure you are getting the correct information. Your house is safe in certain states; however, in other states, it isn’t. It is best to become familiar with your state’s laws regarding bankruptcy before you take the steps to file.

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. Ultimately, this is your bankruptcy and your financial future, so never hesitate to advocate on your behalf.

Before making the decision to file for bankruptcy, be sure you have considered alternative options. If your debts are really not overwhelming, you may find the assistance you need by consulting a consumer credit counselor. You should also try negotiating a payment plan with your creditors; make sure you get a written agreement of the new payment plans.

Do what you can to keep your home. Filing bankruptcy does not necessarily mean that you will lose your house. You can still keep your home, it just depends on your specific situation and the value of your home. You can also investigate your state’s homestead exemption, an option that might enable you to keep your home if certain financial requirements are met.

Do not let bankruptcy consume you, make sure you make time for your friends and family. The process for bankruptcy can be brutal. It’s generally stressful, lengthy and can make people feel guilty, ashamed, and unworthy. Lots of people choose to disappear for a while until the entire process is over and done with. Pulling away from people who care for you will not help the situation, and can cause your negative feelings to intensify. So, it is critical that you spend what quality hours you can with loved ones, regardless of your financial circumstances.

If you are concerned about keeping your car, check with your attorney about lowering the monthly payment. In many cases, you can reduce your payment by filing a Chapter 7 petition. Your car must have been purchased more than 910 days prior to filing, be a high interest loan, and you must have had a steady work history for this to work.

Understand the rights you have as a bankruptcy filer. There are bill collectors who will claim that you cannot add your debts to your bankruptcy case. What you can’t file on is very small, like student loans or child support payments. If these are not the categories in which your debts fall, double check to see if the type of debt can be bankrupted. If it can, be sure to file a complaint about the debt collector with the office of the state attorney general.

File at exactly the right time to maximize the effect of your bankruptcy. The timing of your filing could be important to its success. In some situations it is best to file as soon as possible, but in other situations it is best to wait until after you’ve gotten through the worst of it. Discuss your specific situation with a bankruptcy lawyer to find out when would be your best time to file.

Don’t believe the myth that declaring bankruptcy means you lose everything you own. Personal belongings that fall under private property are something that you can keep. Personal property includes items like furniture, electronics, jewelry, and clothing. Depending on the state you are from, what kind of bankruptcy you’re filing, and your specific case, you could be allowed to keep bigger items, like your car or house.

Choose your bankruptcy attorney carefully. Interview your prospective attorney regarding education and experience. Be certain your attorney has enough expertise and has a valid license. Go online and look up the attorney’s record and read up on any reviews, as well as any pertinent background information.

As previously stated, the reasons for filing for bankruptcy are not generally a happy fairy tale. However, once this chapter is written it is done and you can begin to start fresh. Actually, by using the advice you’ve learned here, your story of hardship could have a happy ending after all!