Coping with the realization that you have to file for bankruptcy is not an easy thing to do. Bankruptcy is an acceptable option if you are in a bad financial situation and have very limited options. Even without perfect credit, you can still get the loans you need.
Keep your debts to a minimum before filing. Don’t run up your debts if you plan on filing for bankruptcy. Judges and creditors will check your recent history, and if it is deemed that you are trying to cheat the system, you may not be able to wipe out those debts. You will be viewed most favorably if you demonstrate that you have changed your spending habits.
When it comes time for you to hire an attorney to deal with your bankruptcy, be sure to find one with a ton of experience with personal bankruptcy, learn about the charges you will have to pay, and how many of their associates will be working on your case.
After your bankruptcy is finalized, you should begin rebuilding your credit by obtaining copies of your credit reports. Your reports may show that you filed for bankruptcy, but it can take time for the credit bureaus to remove the original debt from your credit history. Check your reports over thoroughly, and if there is debt showing that was discharged in a bankruptcy, you can contact the credit bureaus online or in writing and request that the information be deleted.
Start planning for your life after bankruptcy now. The entire process can be overwhelming and leave you feeling like you have few options. You begin rebuilding your financial future right away. Get solid advice from trusted sources, be prepared to work hard at it, and most importantly, don’t be afraid to dream again!
Locate an online support forum for those who have filed for bankruptcy. This way, you can ask other people questions and find out things you may not know. There are many forums on the internet, but there are also some offline groups you can join if you prefer being offline. Because these people know what you’re going through, they can make you feel better about the situation.
Once you have filed for bankruptcy, do not discontinue payment on secured loans. These loans are the ones for your car or your home. Even if you are not receiving paper bills or statements on these accounts, make the regular payment on time each month. These are likely the possessions you do not want to be included in the bankruptcy.
A good personal bankruptcy tip is to be well versed in all of the rules when filing for bankruptcy. The last thing you would want is to be penalized or taxed by the IRS. They do indeed tax some of the debt you’ve managed to get rid of.
Be aware that there are two kinds of bankruptcy. There are Chapters 7 and Chapter 13. Chapter 7 can keep the filer from paying debts entirely. This option is generally for those with debts so high or low income that they cannot afford a payment plan. Chapter 13 lets the filer get a payment plan to repay all or parts of their debt between three and five years.
A great personal bankruptcy tip is to take care of your monetary problems sooner rather than later. You can always seek the help of counselors for free if you’re worried about your finances. Dealing with bankruptcy when it’s a bigger problem is not a situation you want to be in.
When you plan on filing for bankruptcy, you want to protect any assets you can legally protect. During the process, your creditors are likely to liquidate your assets whenever possible to fulfill your financial obligations to them. Some assets are untouchable, so make sure you take the proper steps to protect them. Your retirement account and your home are both untouchable when liquidation.
Know the laws and guidelines about bankruptcy before you formally file. The bankruptcy laws are complex, and things could go badly if even one thing is out of place. If you make an egregious mistake, the judge might dismiss your case. Do as much research as possible about bankruptcy before you file. That way, you will have an easier road.
If you see yourself racking up credit card debt again after filing for bankruptcy in the past, you need to stop yourself before going back to square one. Cut up any credit cards you have and get in touch with a credit counselor as soon as possible.
Be honest with yourself; however, honesty in filing is also paramount. It would be best not to hide side income or assets that you do not want the courts assessing. This will fail and leave you to have a denied petition from the court. In addition, you can lose your rights to re-file on the debts you petitioned at the time.
Write down every debt you have. When you file for bankruptcy, you will use this, so make sure every debt you owe is on the list. Write down the exact amount. Don’t just guess. It can be difficult or even impossible to discharge your debts if you report them inaccurately; be sure that you double-check your figures.
Make sure you hire a good bankruptcy lawyer. Many newer lawyers enjoy this kind of law. Be sure the attorney you retain has at least five years of experience and is board certified. A basic Internet search can turn up client ratings and relevant background information.
Filing for bankruptcy does not mean you are financially limited in the future. When saving money, you show the lenders that you wish to rebuild your credibility. They’ll appreciate it. So start saving and see how much of a change it makes when people view you the next time you go in for a car or home loan.
