Need A Fresh Start? Read These Tips Now!

Posted at by PConran on category Bankruptcy

Declaring bankruptcy is a negative process. The embarrassment can be overwhelming when friends discover your poor financial position. Follow the steps presented here to determine whether or not you need to file for personal bankruptcy at all.

Most people end up filing for personal bankruptcy because they owe more than they make. If you are in this position, you need to be familiar with the laws in your area. Each state has its own laws regarding personal bankruptcy. In some states, your home is protected, while in others it is not. Before filing for personal bankruptcy, be certain that you are familiar with the laws.

Exhaust every other option before making the decision to file for personal bankruptcy. Consider any other options that are available to you, such as consumer credit counseling. Bankruptcy has a negative effect on your credit reports, in that it is permanently there. Before you take this step, make sure all your options have been considered.

After filing for bankruptcy, you could have trouble acquiring unsecured credit. Since it is important that you work to rebuild your credit, you should instead think about applying for a secured card. This will demonstrate that you’re seriously trying to restore your credit. Then, in time, it may be possible for you to obtain an unsecured credit card.

Be persistent in researching information about filing for bankruptcy and consult a qualified personal bankruptcy attorney. If you’ve had collateral, such as a car, electronics, or jewelry repossessed for non-payment, you might be able to recover the property when you file for bankruptcy. If you have any property in repossession that was taken less than three months before filing for bankruptcy, then there are good odds that you can get your property back. Consult with a lawyer who can help you along with filing the petition.

You should not have to pay for an initial legal consultation, and such meetings are great opportunities to ask lots of questions. When you arrive at a consultation ask plenty of questions. You should also seek free consultations from several attorneys prior to choosing one. The lawyer who properly answers your questions is the one you should hire. It is not necessary to decide immediately after your consultation. Be sure to talk with a number of lawyers, and compare the information you receive.

Make sure that you understand the difference between Chapter 13 bankruptcy and Chapter 7 bankruptcy. If you file for Chapter 7 bankruptcy, all of your debts will be eliminated. Any debts that you owe to creditors will be wiped clean. Chapter 13 is different, though. This type of bankruptcy entails an agreement to pay off your debts for five years prior to wiping the slate clean. Look into both types of bankruptcy before deciding which one would suit your particular needs.

Before filing a bankruptcy claim, make sure that your home is well protected. Bankruptcy filings don’t necessarily have to end in the loss of your home. Depending on if your home’s value has gone down or if it has a second mortgage, you might be able to keep it. If this is not the case, find out more about Homestead Exemptions you might qualify for if you meet certain financial requirements.

While going through this process, spend more time with friends and family. Going through a bankruptcy is never easy. It’s generally stressful, lengthy and can make people feel guilty, ashamed, and unworthy. Many people tend to hide until their process is completed. This is not recommended because you will only feel bad and this may cause you to feel depressed. Because of this, it’s vital you keep spending some time with the people you love despite what you are currently going through.

In most cases, bankruptcy isn’t really your only option. The tips here can help provide you with some guidance to avoid filing bankruptcy. Use the tips and advice you’ve learned here to change your habits and thereby change your financial future for the better.

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