Maybe Bankruptcy Is Not The Right Option For You?Posted at by PConran on category Bankruptcy
Drowning in debt can be overwhelming. It seems as if one little debt somehow ballooned into catastrophic debt. Unfortunately, it is not simple to fix. You might consider bankruptcy, look through this article and find out why.
After a bankruptcy, you may not be able to receive any credit cards. Look into getting a secured credit card in order to get back on your feet with building credit. This will allow you to start building a good credit history while minimizing the bank’s risk. Once you’ve built up a history of on-time payments, you may start getting unsecured credit again.
You should never pay for your first consultation with a bankruptcy attorney. Make the most of this free consultation by asking lots of questions. The majority of lawyers offer their first consult at no cost, so ensure you meet with several to find one that you like. Make a choice only if you have received good answers to all the questions and concerns you brought to the table. You need not decide right away. You can take your time and check out several attorneys before making your final selection.
It’s a good idea to meet with a number of bankruptcy lawyers before settling upon one. The majority of them offer free initial consultations. Be certain to speak with an attorney, not their paralegal or law clerk, since they cannot give legal advice. It will be important to work with a bankruptcy lawyer that you feel comfortable with; a little comparison shopping will help you find the right one.
Protect your home. Just because you’re going bankrupt doesn’t mean that you also have to be homeless! Whether you get to keep your home depends on a few things, including its value and whether you have debts like a second mortgage or HELOC. Check to see if you pass the requirements necessary to file for a homestead exemption.
Filing for bankruptcy is not recommended when you have income more than your debts. The cost to your credit history far outweighs the simplicity of the easy-out bankruptcy. This is a hard pill to swallow for many.
Speak with an attorney about any fears you have about losing your car. You may even be able to get your monthly payment reduced. In many cases, Chapter 7 bankruptcy can lower your payments. If you meet the criteria specific to your state, it may be a good option to consider.
Don’t file for bankruptcy without knowing your rights. Many creditors or bill collectors might tell you your debts cannot be included in a bankruptcy. There are few debts that can’t be discharged. If you know that a debt can definitely be bankrupted, yet the collector still harasses you, file a report with the attorney general in your state.
Take action when the time is right. Filling for bankruptcy can be a matter of correctly assessing the right time to begin. There are times when you should file as soon as you can, but in some other situations it may be best to wait for the worst to be over. Talk with a bankruptcy attorney to find out the ideal timing for filing based on your particular situation.
If you plan on filing bankruptcy, never wait too long. Many people simply try to ignore their financial troubles, hoping that they will somehow go away, but this is a huge mistake. It doesn’t take long for debt to become unmanageable, and not taking care of it could eventually lead to wage garnishment or foreclosure. As soon as you find yourself experiencing financial problems, take action and discuss your options with a bankruptcy attorney.
Make a comprehensive list of all of your financial information before you file for bankruptcy. If you do not do so accurately, your petition could be dismissed, or at the very least delayed. Make sure that you add very small sums, even if you believe that they aren’t important. Anything, like a job on the side, assets, like cars, and any outstanding loans should be included.
Sometimes life just happens and you feel like there is little that you could do about it. When you’re ready to proceed with filing, the above tips should provide a few solid guidelines to follow. Make sure that you don’t take them for granted. You can make a true difference in your day-to-day life by following the advice we have presented here.