Whatever led you to declare bankruptcy is probably very sad, but that doesn’t mean that you can’t have a better life after bankruptcy. The bankruptcy laws allow you to have a second chance at building your credit and meeting all your financial responsibilities. Read on for how to make the bankruptcy process be a rebirth instead of financial Armageddon.
Instead of relying on random selections from the phone book or Internet, ask around and get personal recommendations. There are lots of unsavory companies and lawyers out there who prey on people who are in desperate straits. It is up to you to find someone that is trustworthy and can make the process go smoothly.
Keep with what you have decided to do. Filing for bankruptcy may allow you to get back property, such as an auto, jewelry, or electronics, that you may have had repossessed. You may be able to get your property back if fewer than 90 days have passed between the repossession and are filing for bankruptcy. Talk to a lawyer for help with the petition filing process.
If you are seriously thinking of filing bankruptcy, make sure that you contact an attorney. Filing for bankruptcy is a complicated procedure, and you may not be aware of all the ins and outs. A bankruptcy attorney can advise you on how proceed properly.
Learn all the latest laws before you file bankruptcy. These laws change regularly and you should stay up-to-date so you can make the best decisions. Your state’s legislative offices or website will have up-to-date information about these changes.
Filing for bankruptcy should not be done on a whim. Find out if you can receive a reduced interest rate or altered repayment plan instead of bankruptcy filing. If a foreclosure is on your horizon, look into loan modification plans. A good lender will be able to assist you in a variety of ways, from getting rid of your late charges to reducing interest rates. You may even be able to get a loan extension, giving you the extra time you need to pay your debt off. 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. Filing for personal bankruptcy can be very stressful for the debtor. Make sure you take care of your part and let your attorney do the rest. Once the process if over, your life will improve.
Chapter 7
Make sure you consider implications of bankruptcy before filing for Chapter 7. Debts which you shared with another will not be your responsibility any longer if you file for personal bankruptcy under Chapter 7. Any co-debtor may well be held responsible for paying off the total remaining amount of the debt, though.
Before filing for bankruptcy, establish the fact firmly in your mind that you have nothing to be ashamed of. Bankruptcy can sometimes leave people feeling guilty, ashamed and alone. These feelings do not help you and provide no value. A good way to deal with bankruptcy is to make sure that you keep a stiff upper lip.
Filing for bankruptcy can cause stress. In order to keep things together and protect yourself from excess stress, be sure to hire a competent attorney. Don’t allow cost to determine who you hire. You don’t have to use the most expensive attorney; you just need a good quality attorney. Ask your friends, relations and acquaintances who have shared your experience to give you referrals to good lawyers. You could also sneak into court to watch a real live bankruptcy proceeding to see how that attorney handles the situation.
Pay attention to how you satisfy any personal debts before filing for bankruptcy. There are many laws when it comes to bankruptcy, including prohibition of paying some creditors 90 days before you file, as well as family for a whole year. Know the laws prior to deciding what you are going to do.
Include all of your debts that you wish to be erased on the bankruptcy filing papers. If you do not document certain debts, they aren’t going to be on the discharge. It’s your duty to be sure you have everything written down that is important because some debts that could have been discharged may be missed.
Even if your personal and financial situation is quite horrifying, it’s important that you be completely honest when discussing it with your lawyer. One of the worst things you can do is lie about your debts and assets. It is very illegal. You could go to prison for lying on a bankruptcy petition.
Make sure you understand which debt obligations are likely to be discharged. For example, even if you file your student loans, they’ll still be a part of your credit history. Instead, credit repair agencies or a loan consolidation service should be used for reducing debt.
If you have made a mistake and your case is dismissed due to your error, you can usually re-file. However, in most cases you will only have the benefit of the automatic stay for 30 days after you file if your case was already dismissed once. In some cases, you might be able to convince a judge to lengthen the stay, but you’ll need to show that there was a good reason for your re-filing and that it wasn’t just carelessness.
Learn from the mistakes you made that sent you to bankruptcy court. But, that does not mean that your post-bankruptcy life cannot be fantastic. Try using the tips in this article so you can make bankruptcy into the most positive experience possible.
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