How To Rebound After You File Bankruptcy
Posted at by PConran on category BankruptcyIf you are considering filing for bankruptcy, your life probably hasn’t been so great recently, but that doesn’t mean things can’t improve once you file. Once you have completed the bankruptcy process you can begin anew with a clean slate. Learn how to make bankruptcy work for you, instead of allowing it to devastate your life.
Before making the decision to file for bankruptcy, be sure to do some research and learn all you can about the subject. There are many websites available that offer this information. The United States Department of Justice, American Bankruptcy Institute, along with many other websites can provide you with the information you need. The more you know, the better equipped you’ll be to make the wise decisions needed for a successful bankruptcy.
As filing bankruptcy becomes more of a reality, don’t use your entire savings or your retirement funds to pay creditors or attempt to resolve insolvency. Unless there is no other choice a retirement account should not be used. Using your savings is necessary, but decimating it and leaving yourself dangling with no future financial security is not a good idea.
Once you file for bankruptcy, you will have a hard time getting loans or credits. Look into getting a secured credit card in order to get back on your feet with building credit. They offer you the chance to demonstrate the seriousness with which you now take your financial obligations. Once you’ve built up a history of on-time payments, you may start getting unsecured credit again.
Before you decide to file bankruptcy proceedings, determine which assets will be safe. You can find a listing of the asset types that are excluded from bankruptcy in the Bankruptcy Code. Be sure that you study this list. Make yourself aware of any assets you have that could be seized. If you fail to go over this list, you may be unpleasantly surprised sometime down the road if any of your most valued items are seized.
Check into less drastic solutions prior to declaring bankruptcy. If you owe small amounts of money, you can join a counseling program or straighten your finances out by yourself. You may have the ability to negotiate much lower payments, just be sure any debt modifications you agree to are written and that you have a copy.
Meet with a few attorneys who offer free consultations before hiring one. It is important to meet with the actual lawyer, because paralegals or assistants cannot give you legal advice. Taking the time to compare lawyers will ensure that you get a person that you can be yourself around.
Do what you can to keep your home. Bankruptcy filings don’t necessarily have to end in the loss of your home. Depending on whether the value of your home has decreased or if you have a second mortgage on the home, you may end up keeping it. You could also check out the homestead exemption. This lets you continue living in your house, depending on whether you meet certain financial requirements.
There are two different kinds of personal bankruptcy you can file for: Chapter 7 and Chapter 13. Take the time to learn about them extensively, and then figure out which one will be best for your particular situation. If you don’t understand the information you researched, consult with your attorney about the details before you decide which type of bankruptcy you want to file.
The road to personal bankruptcy is a sad and difficult one. Life after bankruptcy can be normal and happy. Try using the tips in this article so you can make bankruptcy into the most positive experience possible.