How To Rebuild Your Credit After Filing Bankruptcy
Posted at by PConran on category BankruptcyLearn from your mistakes and vow to be more financially responsible after filing for personal bankruptcy. The main purpose is to give yourself a fresh, new start in life. By following the tips presented here, you can transform your life through personal bankruptcy.
It is important that you increase your knowledge on personal bankruptcy by reviewing websites that provide reliable information. The United States Department of Justice and American Bankruptcy Institute are both sites that provide free advice. The more knowledgeable you are, the more you can be sure that you are making the right decision and that you are taking the right steps to ensure your personal bankruptcy goes as smoothly as possible.
One of the most important things to remember when filing for bankruptcy is to be honest and truthful every step of the way. As long as you are not hiding income or assets from the courts, you can ensure that there are no difficulties with your petition. This will save you from having your petition dismissed and your debts dropped from re-filing.
If a personal recommendation comes your way, this should be a lawyer you focus on. There are way too many people ready to take advantage of financially-strapped individuals, so you must ascertain that your attorney can be trusted.
When you do meet with a lawyer make sure that they answer all of your questions and that they do not charge you for consultation alone. You can meet with a few lawyers before deciding on one. Most lawyers provide a free initial consultation. Don’t hire an attorney who fails to address all your concerns and questions. It is not necessary to make a final decision right away. 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. One example would be that a consumer credit program for counseling if you have small debts. It is also possible to do your own debt negotiations; however, be sure to get everything in writing.
You may have heard bankruptcy referred to differently, either as Chapter 7 or Chapter 13. Learn the differences between the two before filing. Chapter 7 bankruptcy completely wipes out your debt. This includes creditors and your relationship with them will become no longer existent. If however you enter Chapter 13, you will go into a five year repayment program prior to your debts dissolving entirely. Both options have advantages and drawbacks, so do your research before deciding.
Protect your house. Filing for bankruptcy doesn’t automatically involve losing your home. For instance, if your home value has dropped recently, or even if you happen to hold a second mortgage, you may not necessarily lose the home. Otherwise, there is a homestead exemption you should look into, as it might let you stay in your house.
Ensure that you bankruptcy is your best choice. Consider whether debt consolidation may be a more viable alternative. It is not a quick and easy process to file for bankruptcy. Remember that your credit will be affected by the mark of personal bankruptcy for a long time. This is why you must ensure that bankruptcy is the only option left for you.
Consider filing a Chapter 13 bankruptcy. You are eligible to file Chapter 13 bankruptcy if your income is reliable and your unsecured debt does not exceed $250,000. That way, you can hold onto your personal assets and pay back a portion of your debts pursuant to an approved plan. Such plans generally take between 3 and 5 years to complete, at which point. a discharge will be granted. Just ensure that you take necessary precautions, as missing one payment can result in the court dismissing your case.
As stated in the above article, anytime someone is forced into bankruptcy is never a happy situation. Afterward, however, you can have an easier time. By embracing the information that has been provided here to you, you can take the negative connotation that surrounds bankruptcy and change it to a positive one.