Looking To File For Personal Bankruptcy? Check Out These Tips!
Posted at by PConran on category BankruptcyUnfortunately, bankruptcy today is something that is becoming very common. The recent downturn in the economy has only exacerbated the situation. Before you begin to file bankruptcy, it’s imperative that you know how it works so you can make wise decisions. The following article will get you up to speed on all things concerning bankruptcy.
When it appears likely that you will file a petition, do not start spending your last remaining funds on debt repayment. Don’t touch retirement accounts unless you don’t have a choice. Though you may need to use a bit of your savings, try hard to maintain some of your reserves so that you have some degree of flexibility going forward.
After you have declared bankruptcy, you may have a hard time being approved for unsecured credit. If you are in this situation, applying for a secured card may be the answer. When you do this, it shows your determination to fix your credit history. In time, you might be granted unsecured credit again.
Don’t try to hide anything if you are filing for bankruptcy, as this will hurt you in the long run. Wherever you file, that court has to be made aware of all details regarding your finances, positive and negative. Don’t hold back information and create a strategy so you can deal with what’s really happening.
Seek a less serious option prior to filing for bankruptcy. For example, consumer credit counseling programs can help you by renegotiating your debts with your creditors into payments that you can afford. Also, you could try to get your payments lowered on your own. If you decide to do this, get a copy of anything you agree to.
Filing for bankruptcy is not recommended when you have income more than your debts. Bankruptcy may appear like the easier way to avoid paying your old bills, but it is a huge mark on your credit score and remains there for up to 10 years.
Consider all options before filing for bankruptcy. A lawyer that specializes in bankruptcy law can help advise you of other options, such as repayment plans and reducing interest rates to relieve some of the burden. Loan modification plans on home loans are a great example of this. This type of plan allows your lender to work with you eliminating charges, extending your loan, and lowering interest rates to help you pay back the loan without drowning in debt. Ultimately, creditors want their money, and many times repayment plans are preferable to a debtor that is bankrupt.
Before declaring bankruptcy, it is important to know your rights. Certain unscrupulous creditors will try to convince you that certain debts can’t be discharged in bankruptcy. There are very few debts, such as child support or student loan debt, that can’t be bankrupted. If a collector tries to convince you that some other type of debt, such as a credit card, is non-discharagable, get the company’s information and send a report to your state attorney general’s office.
Bankruptcy is a difficult and stressful process, and you will need all the help you can get. If you want to protect yourself from stress, see to it that you hire a good attorney. Don’t allow cost to determine who you hire. Your lawyer does not necessarily have to be the most expensive one; however, you should be certain of his or her qualifications and abilities. Ask your friends, relations and acquaintances who have shared your experience to give you referrals to good lawyers. Try attending a hearing to find out how bankruptcy attorneys handle the situation.
As you are no doubt aware, bankruptcy is much talked about in today’s economy. Apply the tips from this article to make the best bankruptcy choices.