How To Rebuild Your Credit After Filing Bankruptcy
Posted at by PConran on category BankruptcyWhen debt begins to pile up, even the most responsible among us can panic and quickly lose control of the situation. There are times that having a small financial problem turns into a huge one. Once you realize you have to handle the problem, the real struggle begins. This article can help you learn what to do when filing for bankruptcy when too much debt is hanging over your head.
When you feel certain that you must file for personal bankruptcy, refrain from squandering your life savings to pay off unsecured debt. Don’t touch retirement accounts unless you don’t have a choice. Dipping into savings may need to happen, just don’t totally wipe it out, or you might not have much financial security later.
One critical element for anyone filing a petition for bankruptcy is to be honest in everything you do. Do not hide any income or assets or go on a spending spree before filing for bankruptcy: the court will find out and will not have a positive opinion of you.
After filing for bankruptcy, you could have trouble acquiring unsecured credit. If that is the case, you should try applying for one, or two secured cards. Using a secured card not only helps to rebuild your credit, but it also keeps you from going more in debt with credit card bills. After using a secured card for a certain amount of time, you might be offered an unsecured card once again.
Before filling for bankruptcy, determine which assets will be exempted from seizure. To find an itemized list detailing assets exempt from bankruptcy, find the Bankruptcy Code. Prior to filing for bankruptcy, it is critical that you go over this list, so that you know if you can expect any of your most valuable possessions to be seized. If you do not read this list, you could be in for some nasty surprises in the future, if some of your most prized possessions are seized.
Do not abandon hope. Filing a bankruptcy petition might facilitate the return of your property, including cards, electronics or other items that may have been repossessed. If your personal property was repossessed within 90 days before your bankruptcy filing, you may have a chance of getting it back. Speak with a lawyer that will provide you with guidance for the entire thing.
Any bankruptcy consultation should be free of charge. Almost all lawyers will give a free consultation, so meet with more than one before making a decision on whom to hire. Choose an attorney who is experienced, educated and well-versed in bankruptcy laws. You can think about your decision before making a commitment. That gives you the chance to speak to a number of lawyers.
It is important to protect your home when filing bankruptcy. Filing bankruptcy does not necessarily mean that you will lose your house. Depending on if your home’s value has gone down or if it has a second mortgage, you might be able to keep it. Otherwise, look into the homestead exemption which may allow you to stay in your home if you meet financial threshold requirements.
Look into filing Chapter 13 bankruptcy. If you have regular income and under $250K in unsecured debt, a Chapter 13 may be right for you. This type of bankruptcy protects your assets from seizure and lets you repay your credits over the course of a few years. These kinds of plans usually range across 3, 4 and 5 years. Once this is done, all your unsecured debt will get discharged. Just know that missing one payment could cause your case to be dismissed.
Sometimes life just happens and you feel like there is little that you could do about it. The article you just read offered some helpful tips which you can use to get your financial situation in order when dealing with bankruptcy. Apply the tips you learned from this article into your life.