Bankruptcy: Is It The Right Answer For You?
Posted at by PConran on category BankruptcyThough making the choice to file bankruptcy is never easy, it is often essential. When going through this process it is best you have a lot of knowledge on what is about to take place. In the following article you can pick up some handy advice based on the experiences of other people who have had to deal with the bankruptcy process.
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. By doing this, you will be letting people know that you want to fix your credit score. When you have done well with secured cards for a while, you should be able to obtain an unsecured credit card.
Keep with what you have decided to do. There may still be way to get repossessed items back after you file for bankruptcy. If the repossession occurred within 90 days from your filing date, it is possible that some of your property can be returned to you. Discuss your options with a good lawyer who can help you with the filing of your bankruptcy petition.
Remember to understand the differences between Chapter 7 bankruptcy and Chapter 13 bankruptcy. Chapter 7 eliminates all debts. All creditor relationships will be severed. Chapter 13 bankruptcy though will make you work out a payment plan that takes 60 months to work with until the debts go away. In order to choose the right bankruptcy option, you need to know the differences between these kinds of personal bankruptcy filings.
Most bankruptcy lawyers offer a free consultation, so meet with several before you decide on one. By law, paralegals and assistants can not give legal advice, so be sure that you are meeting with an actual attorney. Seeking out different attorneys is all part of the process until you find someone that you can trust.
Don’t file for bankruptcy if it is not completely necessary. Perhaps just consolidating some of your existing debt, could make them easier to manage. Filling for bankruptcy is a lengthy, stressful process. You should be aware that there are some negative ramifications to it, like extreme damage to your credit score. Because of this, you need to think of bankruptcy as a nuclear option; that is, a last resort.
Do not forget to enjoy life a little once you get through the initial filing process. A lot of debtors usually get stressed when they file. Make sure you take care of your part and let your attorney do the rest. Remember that your situation is going to improve after you file for bankruptcy.
Speak with an attorney about any fears you have about losing your car. You may even be able to get your monthly payment reduced. Many times, payments can be lowered through Chapter 7 bankruptcy. For instance, you can get lower payments on you car if you purchased it before filing and took a loan with high interests on it.
Before you make the decision to file Chapter 7 personal bankruptcy, take time to think about anyone it could affect. Once you file for Chapter 7 bankruptcy protection, you no longer have legal responsibility for debts that you and any co-signers originally agreed to. Although filing for bankruptcy excludes your from financial responsibility, co-signers will still be expected to pay the loan amount in full.
Make sure you understand your rights as you file for bankruptcy. Bill collectors will lie to you and say you can’t have their bill discharged. Most states allow for the majority of debt to be included on a bankruptcy. If a collector uses this tactic about debt that can, in fact, be discharged through bankruptcy, report the collection agency to the attorney general’s office in your state.
In difficult financial situations, filing for bankruptcy is sometimes unavoidable. Now that you’ve read over this article, you learned some things that are from others who have experienced this too. By learning from others who have been there before, it will make things a lot easier on you.