How You Can Help Your Finances With Personal Bankruptcy
Posted at by PConran on category BankruptcyWhen a person needs to file for personal bankruptcy, it is not ever a happy moment. Personal bankruptcy is a stressful and potentially embarrassing time for many people. With the solid advice in the article below, you may be able to make a better choice.
Knowledge is power when you’re considering bankrupcy; there are many websites available to help you. The United States DOJ, the NACBA, and the ABI all have useful information. The more you know, the better equipped you’ll be to make the wise decisions needed for a successful bankruptcy.
Before filing for personal bankruptcy, make sure you are doing the right thing. Look into other options, such as consumer credit counseling. If you file for bankruptcy, a mark is permanently left on your credit. Therefore, before you do this, you should utilize all the other options that you have.
When it appears likely that you will file a petition, do not start spending your last remaining funds on debt repayment. Retirement accounts should never be accessed unless all other options have been exhausted. While dipping into your savings is likely to be necessary, avoid wiping it out completely to prevent leaving yourself with little financial security in the future.
After you have declared bankruptcy, you may have a hard time being approved for unsecured credit. If so, apply for a secured credit card. This will show people that you are serious about getting your credit record back in order. Once you’ve built up a history of on-time payments, you may start getting unsecured credit again.
When looking for a lawyer to handle your bankruptcy claim, the best way to go is off of a personal recommendation instead of simply flipping through the phone book. Bankruptcy attracts a lot of fly-by-night firms that take advantage of desperate people, and a word-of-mouth recommendation makes it more likely that your bankruptcy will go smoothly.
Don’t ever pay a bankruptcy attorney for a consultation, and ask a lot of questions. Nearly all attorneys offer free initial consultations, so you should be able to meet with a few before you make a final hiring decision. Make a decision when all your concerns and questions have been addressed well by one lawyer in particular. You can think about your decision before making a commitment. You could even go to different lawyers for advice.
Take the time to find a simpler solution to your financial issues, before filing for bankruptcy. Those with smaller debts may find use in a program for consumer credit counseling. You may have luck negotiating lower payments by dealing directly with creditors, but be sure to document any get and new agreement terms in writing from each creditor.
Make certain that you are fully aware of each and every bankruptcy law prior to even considering filing. For example, it is against the law to transfer any assets from the filer to another for a year before filing. Additionally, it is against the law for any filer to boost up the debt amount they carry on any credit cards just before filing.
As you can tell, you do not have to let bankruptcy take control of you. The guidance from this piece can serve as a road map for steering clear of bankruptcy. Use the information in this article to change your financial future and never have to worry about credit again.