Bankruptcy Woes? Simplify The Process With This Useful Information

 

The path to bankruptcy is not normally a happy one, but your life can improve once the filing has occurred. The whole point is to wipe the slate clean and have a new chance at life. Continue to read this article to learn how good a bankruptcy can end up being for your life.

When talking to a bankruptcy attorney, make it a point to tell him all the debts you have. While this means you have to disclose information about credit card companies, hospitals and lenders, it also means you should tell him about any money that you owe family and friends.

Chapter 13

If you find out that you don’t qualify for the Homestead Exemption after filing Chapter 7 bankruptcy, you may be able to file Chapter 13 in addition for your mortgage. Sometimes, the best course of action may be to simply re-file your case as a Chapter 13 bankruptcy. Talk to your lawyer to determine if this is true in your case.

File for bankruptcy before your finances get completely out of control. Some folks ignore financial difficulties for a long time, and this can be disastrous. If debts are not dealt with quickly, things can quickly get out of control. Not only will you be faced with late fees and interest, but you may also be faced with a wage garnishment or foreclosure if you ignore your financial woes. You should call a good bankruptcy lawyer and ask for advice as soon as you find your debts have become completely unmanageable.

Remember to have fun with your life when you’re done with the filing process initially. After filing, many people find themselves stressing over their situation and how to fix it. That stress could lead to complete depression, if you do not take the necessary steps to fight it. After you have finished filing for personal bankruptcy, your life will improve.

Don’t jump into bankruptcy without assessing your situation with a cool head. Think carefully about your situation with debt and determine which debts can be discharged with your bankruptcy. Some debts like non-essential items you charged on your credit card within the past 90 days before declaring bankruptcy cannot be discharged. Bankruptcy laws may vary from state to state, so be sure that the laws you study are the ones that are applicable to you and your state.

Rather than checking online, try to get recommendations from friends or family about a suitable bankruptcy attorney. There are various companies that prey on the financially desperate, so you need to find someone you can trust to ensure the process goes smoothly,

Secured Cards

Once you file for bankruptcy, you will have a hard time getting loans or credits. If you do, then try applying for a coupe of secured cards. This demonstrates to creditors that you are making a good faith effort to repair your credit. When you have done well with secured cards for a while, you should be able to obtain an unsecured credit card.

Don’t leave all the details in your lawyer’s hands. Although your lawyers is educated on bankruptcy laws, it is ideal that you know as much as you can regarding the process. You might feel overwhelmed by the process and want to leave your bankruptcy entirely up to your attorney, but stay involved — your financial future is involved.

Be sure that bankruptcy really is your best option. Consider whether debt consolidation may be a more viable alternative. The whole process of filing for bankruptcy can be a long, and hard one. You will have trouble getting credit down the line. You only want to file for bankruptcy after you have exhausted your other options for dealing with your debts.

Do not take a large cash advance from credit cards prior to filing, knowing that bankruptcy erases all debts. Doing so, is a type of fraud that may result in your having to pay back all money advanced from credit card accounts in the months just prior to your bankruptcy.

Know what you’re getting into. Given that you are in dire financial straits when you file for bankruptcy, you will likely be tempted to save money by handling your filing on your own. If that is your choice, you have to be sure you are educated about the bankruptcy laws. Those that do it themselves commonly make errors, preventing them in securing a discharge. Do everything the right way so it all goes through as it should.

As stated earlier, anything that leads someone to bankruptcy is not a good story. But, that does not mean life after bankruptcy has to be negative. The truth is, that by using the tips in this piece, it is possible to make bankruptcy a positive experience that gives you the fresh start you need.

 
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01/01/2013