Going through bankruptcy is a stressful experience. Your financial options become very limited. Even without perfect credit, you can still get the loans you need.
Always be honest and forthright when it comes to your bankruptcy petition. You may be tempted to try to hide income and personal assets from discovery, but doing so often leads to major complications, monetary penalties and the possibility that your case will be thrown out of court.
You might experience trouble with getting unsecured credit after filing for bankruptcy. In this event, you should attempt to apply for a secured card or two. Having a credit card of any type will allow creditors to realize that you’re attempting to work in the right direction to repair your credit. 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.
Prior to filing for bankruptcy, determine which assets, if any, are exempt from being seized. To find an itemized list detailing assets exempt from bankruptcy, find the Bankruptcy Code. You need to compare this list to the assets you own so that you are not surprised when certain assets are seized. If you do not read this list, you could be in for some nasty surprises in the future, if some of your most prized possessions are seized.
Prior to declaring bankruptcy you really need to be sure that you’ve exhausted all your other options first. For example, consumer credit counseling programs can help if your debt isn’t too large. Sometimes you can negotiate a reduced payment, though you must strive to get it all in writing.
Learn about teh differences between Chapter 13 and Chapter 7 bankruptcy. Get a good grasp of the pluses and minuses each type of filing involves by researching both of them extensively. If you have trouble understanding the wealth of information, talk to your lawyer so he or she can help you make an informed choice.
Chapter 13
Find out more about Chapter 13. If you posses a regular source when it comes to income, and you have less than $250,000 of unsecured debt, you could file using Chapter 13 bankruptcy. That kind of bankruptcy allows you to hold on to your personal things and real estate while repaying your debts with a plan to consolidate your debt. 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 that missing a payment to the plan will result in your case being dismissed.
Being with the people who you love should be still be a top priority. Filing for bankruptcy is a difficult process. At the end of the process, many people are left with feelings of shame and worthlessness. A lot of folks decide to hide themselves from the world around them until the end of the process. However, self imposed isolation will only make you feel even worse about the process and could even lead to depression. Spend time with your family, talk about your problems and find things that relax you.
If you have a co-debtor, consider the ramifications that filing a Chapter 7 bankruptcy will have. Debts which you shared with another will not be your responsibility any longer if you file for personal bankruptcy under Chapter 7. However, your creditors will be able demand that your co-debtor pays the debt off in full.
It is possible to get an auto loan or mortgage during the repayment period for Chapter 13 bankruptcy. It is a little more difficult, though. You will need to secure the trustee’s approval for any new debt obligation. When meeting with the trustee, bring a budget which shows that you will be able to afford the payment on the loan you are trying to get. You should also be prepared to explain why you need to purchase the item.
Bankruptcy laws are very exact and very important, so ensure that you’re well aware of all current laws before you file a petition. You need to know certain things, like the fact that it’s illegal to transfer any asserts 12 months before filing your claim. Also, you can’t go and max out your credit card just because you are about to file for bankruptcy.
Do not omit any information about your finances, assets or debts when filling out your bankruptcy paperwork. If you leave off even one tiny detail, you may end up in some serious trouble, but at the least your claim will be denied. No matter how insignificant a sum seems, include it in the documentation. When it comes to the types of things you might not be thinking about adding, just think about any automobiles you have, any money under the table you’re making, etc.
Although it is tempting to toss out the idea of ever owning credit cards again, think again. Although this may seem plausible, this actually isn’t doing them any good. Without rebuilding your credit through the use of new credit, you will have trouble with future purchases that require good credit. Start by using just one credit card, and propel your credit in a positive direction.
You now must realize that filing bankruptcy with not limit your life forever. Saving your money goes a long way to show your lenders concrete proof that you are serious about reestablishing your credit. Save as much as you can and you will see the difference when you walk in for a new loan for a car or a home.
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