Tips For Using Bankruptcy To Your Advantage
Posted at by PConran on category BankruptcyMost people never expect to be in the position of facing bankruptcy. Life can change in an instant, which can cause bankruptcy to be your only choice. Therefore, knowing how you can deal with this is vital. If you have questions about what you should do in this situation, continue reading to learn some great advice.
Don’t look at bankruptcy as a first step. Look at all the other options you may have first. Other available options include consumer credit counseling. Your credit record will be harmed by a bankruptcy filing, and therefore prior to making such a decision, it is wise to investigate other options in order to minimize the damage you suffer.
Be warned that after your bankruptcy, you may stand out as a leper to credit institutions. You may be unable to get a simple credit card. A great way to rebuild your credit is to apply for a prepaid credit card. When you do this, it shows your determination to fix your credit history. Unsecured credit may be offered to you quicker than you think after doing so.
Try to get a bankruptcy lawyer that your friends recommend, as opposed to someone that you find from the Internet or yellow pages. There are plenty of companies who know how to take advantage of people who seem desperate, and it’s important to be sure your bankruptcy can go smoothly; take your time and choose someone you can trust.
Be certain to grasp the distinction between Chapter 7 and Chapter 13 bankruptcy cases. If Chapter 7 is what you file, your debts will get eliminated entirely. Any ties that you have with creditors will be dissolved. A Chapter 13 filing involves a repayment plan, though. Typically, you will make a partial payment against your debts over the next 60 months before the balance of the debts is lifted. It is worth while to take your time to research both types of bankruptcy to decide which option works best for you, and your financial situation.
Do not forget to enjoy life a little once you get through the initial filing process. Many debtors stress-out during the time of filing. The stress of dealing with bankruptcy could cause you to fall into a depression, unless you take steps to take care of yourself. After you have finished filing for personal bankruptcy, your life will improve.
A great tip to remember if you have filed for Chapter 13 is that you will still be able to receive a loan, so you shouldn’t refrain from trying. Of course, it’s difficult. Before you can take out a new loan, you will have to clear it with your trustee. You will need to make a budget and prove that you will be able to afford your new loan payments. Also, be sure you can provide an explanation as to why this purchase is necessary.
Make sure you understand your rights as you file for bankruptcy. It is not unusual for creditors to claim that their debt is not able to be discharged. There are a few debts that cannot be cleared, such as student loans and child support, but be sure to know the details when dealing with debt collectors. If you are told differently by a collector, research the information yourself. If you find they are in error, get the name of their company, phone number and any identifying info so you can report it to the attorney general in your area.
If you plan on filing bankruptcy, never wait too long. Some folks ignore financial difficulties for a long time, and this can be disastrous. It is too easy for debt to mount up and become uncontrollable, which could lead to loss of assets or wages. As soon as you stop denying that your debt is unmanageable, seek the advice of a good bankruptcy attorney.
Wise advice is positively vital when you find yourself stuck in a financial position that demands a personal bankruptcy filing. Your process will be easier if you have the information. With the tips from this article, you should be well-prepared to handle anything bankruptcy related.