Article written by-Greenwood Mooney
If you are thinking about filing for bankruptcy, you are probably already overwhelmed at all the things you need to do and all the information you need to provide. However, the good news is that you are laying a strong foundation for your future financial life. Here are a few tips to help you get through your bankruptcy.
Consider hiring an attorney who specializes in personal bankruptcy. Although most states allow you to file for bankruptcy without a lawyer, your case could be dismissed if you don't fill out your paperwork correctly, and you may need to file additional motions to protect your property or discharge certain debts. A bankruptcy attorney can help ensure that you get the outcome you hope for when you file.
Don't charge up your credit cards knowing you are going to file bankruptcy, if you have already started the process or made recent purchases for luxury items. While this type of purchasing is still part of your "�debt,' it is likely that you'll still be responsible for repaying the money for those items. In most cases, what you are attempting to do is obvious.
If you are trying to rebuild credit after filing for bankruptcy, you should apply for secured credit cards. These can help you establish credit, but you have to make sure that they are one of the companies that report to the major credit bureaus, since all of them do not.
If you are planning to file for bankruptcy in the near future, don't charge up your credit cards thinking that you won't have to pay back the debt. In many states, there are rules about how much credit card debt and what kind, may be discharged in a bankruptcy. For instance, if you make purchases for luxury items, such as an expensive new TV, within 6 months prior to filing, you may be obligated to pay that amount back. On the other hand, if you used your credit card to purchase groceries, or other necessities, the rules may be different. Be sure to ask your attorney for advice.
Consider filing websites than Chapter 7, if you are facing foreclosure. A Chapter 13 bankruptcy allows you to create a restructured payment plan which includes your mortgage arrears. This will allow you to get your mortgage payments current, so that you won't lose your home. Chapter 13 doesn't require you to turn over property, so you don't have to worry about the homestead exemption, either.
Many bankruptcy attorneys offer the first consultation with no charge, so consult with several before deciding on one. Meet with the actual lawyer, not a paralegal or assistant, as they're not allowed to give out legal advice. Hiring a lawyer could help you become comfortable with the legal things that you will encounter.
10 Ways to Bounce Back After Bankruptcy
10 Ways to Bounce Back After Bankruptcy While the prospect of restoring your credit and financial stability can feel overwhelming after a bankruptcy, it hardly compares to the negative emotions experienced before filing for one. That's why, if you've survived a recent bankruptcy, you probably feel a sense of freedom with the chance to make a fresh start. However, https://www.bloombergquint.com/law-and-policy/ibc-bankruptcy-regulator-proposes-easier-withdrawal-framework may also be concerned that your filing could impact your future credit score and prevent you from achieving your long-term financial goals. For this reason, you need a smart post-bankruptcy plan.
Prescreen any bankruptcy lawyer before hiring one. Because bankruptcy is an every-growing area of law that attracts new lawyers all the time, you are likely to encounter many new lawyers who do not have much experience. You can check any bankruptcy lawyer's credentials online and see if they have any disciplinary actions on their record for improper filings or practices. You are also likely to find client ratings. In the matter of choosing a lawyer, one with experience and a positive record is always best.
Don't wait too long to file bankruptcy if, you have to go that route. Many debtors spend years trying to deal with debt before they file. You can get free consultations with some attorneys, to find out about bankruptcy and your rights. They can suggest the best time to file, and may provide services like credit management.
As you are working to make the decision to file for personal bankruptcy, remember that it will affect your life for at least the next ten years. Bankruptcy should be used as a last resort and the decision to file not taken lightly. Carefully weigh your options before you make any decisions.
Do not think of filing for personal bankruptcy as a shameful thing. The bankruptcy process can make many people feel ashamed, guilty and unworthy. But, there is nothing positive about feeling this way and it can actually affect your mental state. To best deal with filing for bankruptcy, look for the positives in the situation.
It is not uncommon for people to declare that they will never again use credit cards after they declare bankruptcy. This isn't necessarily a good strategy to follow because good credit is established by getting, and handling, credit responsibly. Avoiding credit altogether prevents you from rebuilding your credit standing, and will therefore serve as an obstacle when you wish to finance a house or a vehicle. You can start building up a more responsible credit history by opening one credit card account.
Before meeting with an attorney about your personal bankruptcy, get your paperwork in order and have it available. The attorney will need to see all of this documentation to help you move forward. Don't be selective in what you bring! Every document you have that shows finances, assets, debts and credit will need to be considered.
See what your options are. Just because you stop receiving bills when you file for Chapter 7 bankruptcy, doesn't mean you are off the hook for paying them. Although you don't have to pay every bill if you cannot afford to, it is especially important to keep up with payments for any possessions you hope to keep, like your home and auto.
If you are avoiding personal bankruptcy but fear that you will lose your retirement savings, you should know that is not likely to happen. If you have an ERISA qualified retirement program (most are), then your retirement savings are safe from claims by creditors. This applies to funds in 401ks and to most IRAs. Consult your own bankruptcy attorney for specific details for your circumstances, but you should know the odds are in your favor.
There are two common types of personal bankruptcy. One in which all your assets are liquidated and the other creates a plan to pay off debts within a few years. It is recommended that you meet with an attorney to determine which type of bankruptcy is best for your particular situation.
A great personal bankruptcy tip is, to be extra careful about filing for bankruptcy when you own your own small business. Oftentimes, the line between your assets, and your small business's assets can be hazy. When you're filing bankruptcy you could potentially be putting the fate of your business in jeopardy.
If you are filing for chapter seven bankruptcy, the dismissal of the balance of your debts is not a given. There are secured debts that must be reaffirmed, meaning you must draw up a new payment agreement. Other debts cannot be discharged at all. For instance, court-sanctioned fines cannot be discharged under Chapter 7. The same goes for child support and alimony payments.
You should now be better prepared for the plethora of decisions that you will face, if you have decided to go through with bankruptcy. Use all of the tips and advice that were included in this article, to help walk you through the long process of filing personal bankruptcy, the best way possible.