The economy is looking bad these days. In a weak economy, many people find themselves out of work and accumulating debt. Debts result in bankruptcy, which is never a good thing. If you or a loved one is considering bankruptcy, find out what to do about this situation by reading this article.
You should check with the personal bankruptcy resources available online to educate yourself thoroughly before you begin the process. The United States Department of Justice, the American Bankruptcy Institute and the National Association of Consumer Bankruptcy Attorneys, all provide valuable information. You need to spend some time gathering valuable information so you can file your bankruptcy with confidence.
Ask yourself if filing for bankruptcy is truly your best option. Alternatives do exist, including consumer credit counseling. Bankruptcy stays on your credit for a whole decade, so if there are less drastic options that will solve your credit problems, it is in your best interest to make use of them.
Don’t fear reminding your attorney of any specific details of your case. Do not assume that if you’ve already told him or her something important once, that they will remember it later without a reminder. Speak up. This is your life, and your future depends on it.
Unsecured Credit Card
It’s not uncommon to learn soon after bankruptcy that you are unable to get an unsecured credit card easily. If this happens to you, think about applying for a couple of secured credit cards. This will show other people that you’re serious when it comes to having your credit record in order. When you have done well with secured cards for a while, you should be able to obtain an unsecured credit card.
Be honest when filing for bankruptcy. Don’t hide liabilities or assets, as they’ll come back and haunt you. When you file make sure whoever is handling the process is fully aware of each and every financial detail. Divulge all of your information so that you and your lawyer can devise the best strategy for dealing with your situation.
When a bankruptcy is imminent, retain a lawyer immediately. Personal bankruptcies are detailed and complex processes, and you may miss something that costs you money. Personal bankruptcy attorneys can help make sure everything is done properly.
If you’re unsure, then you need to learn what a Chapter 7 bankruptcy can do for you, as opposed to what Chapter 13 does. There is a wealth of information online about each type of bankruptcy and their respective pluses and minuses. If you’re really not sure how this all works after your research, meet with your lawyer and ask them prior to making a decision.
Spend time with friends and family to keep your stress levels to a minimum through the bankruptcy filing process. The process of bankruptcy can prove particularly brutal. It takes time and a lot of people feel stressed and ashamed throughout this procedure. Some folks tend to stay in the shadows until their case has concluded. Isolating yourself from your loved ones can lead to feelings of depression. So, it is critical that you keep spending time with the ones you love, regardless of the current financial situation.
Before you decide to file for Chapter 7 bankruptcy, consider how it could affect other people on your credit accounts, such as family members or business partners. You will be freed of responsibility for debts that you share if you make a successful Chapter 7 filing. However, if you had a co-debtor, they will be required to pay the debt.
Make sure you understand your rights as you file for bankruptcy. Some debt collectors like to say that you cannot file for bankruptcy on these debts. There are only three main classes of debts that are non-dischargable: taxes, child support and student loans. If you are speaking to debt collectors about another type of debt and they tell you it cannot be discharged, check your local regulations. You can report the collectors to your state attorney general if they are lying about this.
If you plan to pay debts off before you file for bankruptcy, be careful. The bankruptcy code stipulates that you cannot make certain payments to creditors or family for specified periods of time before filing. Do your research and figure out the laws for you.
Know that bankruptcy in the end may be your best bet for restoring your credit, as opposed to the continuous pattern of missing or making late payments on what you owe. Your credit report will show your bankruptcy for the next ten years, but it will also allow you to start working towards repairing your credit immediately. A great feature of bankruptcy is its ability to provide consumers with a clean financial slate.
It is not uncommon for people to declare that they will never again use credit cards after they declare bankruptcy. However, this is not a good idea because it is desirable to heal your credit rating. You have to reestablish your credit once you hurt it, this way you can still position yourself to take out things, such as home or car loans, in the future. You can start building up a more responsible credit history by opening one credit card account.
The economy is not in great shape right now, and although things are slowly getting better, there are still large numbers of people out of work and in debt. Even if you do not have a lot of money, there are many ways to prevent filing for bankruptcy. Hopefully this article has provided you with some tips to keep yourself, or someone else, from having to file for bankruptcy. Put this advice to work for you starting today.