Are You About To File For Personal Bankruptcy? See These Tips First!
Posted at by PConran on category BankruptcyLife after a bankruptcy may be quite challenging. Bankruptcy is an acceptable option if you are in a bad financial situation and have very limited options. Even if you have poor credit, there’s still lots one can do to obtain a loan, but you need to keep reading to learn how.
Before you file for bankruptcy, carefully consider if it is the right option for you. Consider any other options that are available to you, such as consumer credit counseling. Bankruptcy will be on your credit report and affect your credit score for many years to come, so it is a decision that should not be taken lightly. Try to use it as a last resort.
Always be honest with the information you give about your finances. Not hiding any assets or income is essential for avoiding possible penalties and your ability to re-file at some point in the future.
Be sure to bring anything up repeatedly if you are unsure if your lawyer is focusing on it. Don’t assume that he’ll remember something from a month ago; tell him again. This is your bankruptcy case, so do not be afraid to remind your lawyer of any key facts.
You might find it difficult to obtain an unsecured credit card or line after emerging from bankruptcy. If so, apply for a secured credit card. This will allow you to start building a good credit history while minimizing the bank’s risk. After using a secured card for a certain amount of time, you might be offered an unsecured card once again.
You are going to get found out and get in trouble if you don’t disclose all your assets, so be totally honest from the beginning. Your attorney and trustee should be privy to all information about your finances. Divulge all of your information so that you and your lawyer can devise the best strategy for dealing with your situation.
Do not give up. When you file for bankruptcy you may be allowed to recover property like your car, electronics or jewelry that might have been repossessed. If the items were repossessed less than three months prior to your filing date, you may be able to recover them. Consult with a lawyer who is able to assist you in the filing of your petition.
Remember to understand the differences between Chapter 7 bankruptcy and Chapter 13 bankruptcy. Under Chapter 7 type bankruptcy, all debts are forgiven. Your former ties with creditors will cease to exist. If you choose to file for Chapter 12 bankruptcy, you’ll be put into a 60-month plan for repaying your debts before they’re eliminated. You must know about the different bankruptcy types, and how each can affect you.
Understand the differences between a Chapter 7 bankruptcy and a Chapter 13 bankruptcy. Learn the benefits and drawbacks of each type before deciding which is right for you. If there is anything that you don’t understand, go over it with your lawyer so that you can make the best decision.
Although you have already filed for personal bankruptcy, don’t make the mistake of thinking that you’re now marked for life. When creditors can look at your credit report and see that you have made an effort, over time, to pay on time, getting credit will become easier again. Manage your finances more efficiently and file for bankruptcy if you absolutely need to get out of your current situation. Once you can show that yo are responsible, lenders will view you more favorably.