Tips On Fixing Your Finances After Bankruptcy
Posted at by PConran on category BankruptcyBankruptcy is a tough decision, one that should be given a lot of thought. By reading this article, you will have a better understanding of all that filing for bankruptcy entails. Doing as much research as possible is important.
Do some research online about personal bankruptcy to get a better idea of what this procedure implies. The US Department of Justice and American Bankruptcy Institute are two such places to look. The more you know about it, the better you are able to make the best decision for your situation and to make sure that the bankruptcy proceedings move forward with minimal setbacks.
The most important tip a person filing for personal bankruptcy can remember and follow is to be completely transparent in all dealings. To avoid problems, penalties and future re-filing bans, resist the urge to hide documentation or assets.
After you have declared bankruptcy, you may have a hard time being approved for unsecured credit. If you do, then try applying for a coupe of secured cards. This will show people that you are serious about getting your credit record back in order. After a while, you may be able to get unsecured credit again.
You should not have to pay for a consultation with a bankruptcy attorney. Make sure you ask lots of questions. Most lawyers will meet with you for free and give you helpful advice, so meet with several. Make your decision after all of your questions have been answered. You do not have to give them your decision right after the consultation. You have lots of time for consulting with other lawyers.
Take steps to ensure your home is protected. Filing bankruptcy does not necessarily mean that you will lose your house. Check your home’s current value to see if it has gained equity and get your first and second mortgage papers together. Another option is the homestead exemption that has certain income and financial requirements, but may also allow you to keep your home.
Don’t file for bankruptcy unless it’s absolutely necessary. Perhaps consolidating your existing debt can make it easier to manage. Bankruptcy cases are long, anxiety-filled experiences. It will have a major effect on your credit as time goes on. So, consider bankruptcy only as a last resort when you have no other choice.
Consider filing for Chapter 13 bankruptcy. If your total debt is under $250,000 and you have consistent income, Chapter 13 will be available to you. This allows you to keep possession of your real estate and property and repay your debt through a debt plan. Typically, this goes on for roughly three to five years, and once this time has expired, your unsecured debt is eliminated. Remember that missing a payment to the plan will result in your case being dismissed.
Investigate other alternatives before resorting to bankruptcy. You can get your interest rates reduced or enter into a debt repayment plan. Before you file bankruptcy, ask your attorney if any of these are viable alternatives for you. Loan modification plans can help if you are dealing with foreclosure. These plans allow you a longer pay off period by extending the term of the loan, reducing the rate of interest or forgiving late fees. When push comes to shove, creditors want their money, and they are willing to make concessions to get it and prevent the debtor from declaring bankruptcy.
As you can probably see, filing bankruptcy does not happen quickly or easily. Filing for bankruptcy is a very involved and precise process. Use what you learned in this article to straighten your finances and improve your situation.