Personal Bankruptcy: Do I Have Any Choices?

 

You are not alone if you have become a victim of debt. The bills keep adding up and it is never a friendly voice on the other line when the phone rings. If you are having financial difficulty, it is a good idea to research all your options, including bankruptcy. Keep reading to see if this is a viable solution for you.

Make sure to list all of the debts you are responsible for when you retain a lawyer to handle your bankruptcy case. You should include loans from friends and family as well as money owed for credit cards, medical expenses and any other loan companies.

Don’t look at bankruptcy as a first step. Look at all the other options you may have first. Look into other options, such as consumer credit counseling. Your credit score will be forever effected by bankruptcy, which is why you should do everything else in your power to resolve matters first.

Be positive that bankruptcy is actually your only option for help. This can prevent unnecessary damage to your credit. Often companies will reach a settlement that is greatly reduced. Other times, they will help you find a repayment plan that you can manage. This could be a good way to avoid bankruptcy and protect your credit score. Before filing, think about a loan for debt consolidation.

Obtain copies of all credit reports about six months after the bankruptcy petition has been approved. Scrutinize the information, and make sure all debts that should be discharged are and that all of your previous credit accounts are closed. Address any mistakes or issues that you find so you can be on your way to better credit.

After your discharge, be more careful about acquiring debt. There are lots of lenders who offer loans and credit cards to those who have finished a bankruptcy. You will be shocked at the interest rates being offered. Those kinds of cards can lead you back to bankruptcy right away, unless you are that strong internally.

Understand that in the long run, a bankruptcy filing may be better than continued missed paymsent when it comes to your credit score. It is true that a bankruptcy stays on your credit record for ten years, but you are freed to start improving your credit immediately. Getting a fresh start is one benefit of bankruptcy.

You can always refile for bankruptcy if your case is dismissed. However, if this is the case, the automatic stay will only cover you for 30 days the second time you file. It’s possible to get an extended stay if you can convince the judge that your error was not unreasonable.

Banish the word “shame” from your vocabulary before you file for bankruptcy. This process is less that glamorous, and it makes most people lose their self-esteem. These are useless emotions, however, and can be harmful to your mental state. Try to keep a positive attitude during this tough time and you will be able to better cope with bankruptcy.

Make time to visit with family and friends during the bankruptcy process. Bankruptcy can really wear down your emotional reserves. The long process can leave people stressed out and racked with guilt and shame over having their financial affairs laid out for everyone to see. Avoidance of friends of family during the process is not uncommon. However, becoming a hermit will only increase feelings of self-doubt and could make you depressed. Because of this, it’s vital you keep spending some time with the people you love despite what you are currently going through.

When you are filing for bankruptcy, make sure you list all of the financial information you may have. If the court thinks you are attempting to conceal information, your petition could be denied. No sum is too small to be included; err on the side of caution and include everything. Include all jobs, assets and loans.

Getting Divorced

Rethink getting divorced if you are in a bad financial situation. The economic stress of a divorce can be the final blow leading to bankruptcy and this situation may be avoided. A great way to avoid this is by not getting divorced.

Learn about teh differences between Chapter 13 and Chapter 7 bankruptcy. Research them online to see the positive and negative aspects of each one. Engage your attorney in a conversation about each type, and ask him to answer any questions you may have before deciding which kind is right for you.

Now you know that there’s so much assistance out there when it comes to filing for bankruptcy. If you take a rational, methodical approach, you’ll soon be experiencing the fresh start you’ve been waiting for.

 
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01/01/2013