While filing for bankruptcy may be a hard decision to make, for some it is a necessity. Before filing for bankruptcy, it is important that you fully understand what it means and what is involved in the bankruptcy process. This article contains information that has been gathered from others who have successfully navigated the bankruptcy process.
Do some research online about personal bankruptcy to get a better idea of what this procedure implies. The U.S. Some valuable resources include the U.S. Dept of Justice and American Bankruptcy Institute. The more you know, you can be confident you are choosing the right thing and that you are taking the right road to make sure your bankruptcy proceeds as easily as possible.
Consider all options before deciding to file for personal bankruptcy. You can also avail yourself of other options, such as consumer credit counseling. Your credit record will be harmed by a bankruptcy filing, and therefore prior to making such a decision, it is wise to investigate other options in order to minimize the damage you suffer.
After a bankruptcy, you may not be able to receive any credit cards. Since it is important that you work to rebuild your credit, you should instead think about applying for a secured card. This will be a demonstration of the seriousness with which you view rebuilding your credit rating. Once you’ve built up a history of on-time payments, you may start getting unsecured credit again.
It is important to understand clearly the benefits of a Chapter 7 or 13 bankruptcy. Research them online to see the positive and negative aspects of each one. If anything you see is unclear or doesn’t make sense, go over it again with your attorney before making the final filing decision.
Consider filing for Chapter 13 bankruptcy. 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. This allows you to keep possession of your real estate and property and repay your debt through a debt plan. The window for Chapter 13 repayments is typically 3-5 years. At the end of this time, any unsecured debt is discharged. Keep in mind that missed payments will trigger dismissal of your case.
Be around family as much as possible. Bankruptcy can really wear down your emotional reserves. It is long, full of stress and leaves individuals having feelings of shame and guilt. Many people decide to hide away from the world until the process is over. Isolating yourself from your loved ones can lead to feelings of depression. Therefore, it is important that you continue to spend quality time with your loved ones despite, in spite of your current financial situation.
Be sure you’re acting when the time is right. When it comes to filing for personal bankruptcy, timing is everything. Sometimes, it is good to file immediately, but sometimes it is smarter to wait until you have passed through the worst of things. Speak with a bankruptcy lawyer to see when is the best time for you to file bankruptcy.
Make sure you know the bankruptcy laws before filing your petition. There are many issues with personal bankruptcy code, and these pitfalls can cause problems with your case. Mistakes can also have your case dismissed. Before you begin bankruptcy proceedings, research as much as you can. Doing this will make the process easier.
Make sure you are aware of all your options before you file for bankruptcy. One good option might be credit counseling. Various non-profit companies are out there to give you assistance. They can help you to lower both your debts and interest owed to creditors. You will pay them, and in turn, they will pay the people you owe money to.
Never take huge cash advances directly from your credit cards before you file for bankruptcy, since you know that all debts will be erased from these cards. This is considered fraud, and even after bankruptcy you can be forced to pay all of that money back to the credit card company.
Do not take too long deciding that it is time to declare bankruptcy. Yes, it may be hard to admit the need for help, however, if you try to stall from getting help your situation can only worsen. Speaking with a professional in a timely manner will allow you to receive sound advice that can help you before things get out of hand.
Quickly decide to start being more fiscally responsible prior to filing. This includes borrowing money from friends, you want to create a clean slate when you file for bankruptcy. Judges may take into account your current credit history, in addition to your past credit history, when considering your bankruptcy case. Even though you may have found yourself in a bind, you want to show them that you are trying to make serious efforts to stabilize your finances.
Make a list of all your debts. You need this list to file for bankruptcy, so be certain you do not forget anything. Go through your papers and records so you are certain about actual amounts. Don’t speed through this step; to get the correct sums discharged, it behooves you to get the amounts correct.
Once your bankruptcy is over, request a copy of your credit report from all of the credit reporting bureaus. You want to see an accurate record of the closure of your accounts and the discharge of your debts. If you find any errors, contact the credit reporting agency to get them fixed immediately for the sake of your credit rating.
Include all of your debts that you wish to be erased on the bankruptcy filing papers. If you fail to include a debt in your filings, you will still owe it when your bankruptcy is discharged. It is up to you to ensure all things that need to be taken care of are written down, otherwise you will be stuck paying on things that weren’t discharged.
Nobody wants to file for bankruptcy, but in some cases the situation becomes necessary. Having studied the information in this article, hopefully you are better prepared to deal with the bankruptcy process. You can take comfort in the fact that others have been in this situation before you, so take heed from their experiences to help you deal with your own.