Shedding Light On The Steps For Bankruptcy
Posted at by PConran on category BankruptcyIt is not uncommon these days for people to be drowning in debt. Their bills pile up higher while debt collectors and creditors keep their phones ringing constantly. You may have found yourself in the same situation, and you should know that bankruptcy could be a good option for you. Read the following paragraphs to decide if this path is one that you should take.
Don’t be afraid to remind your lawyer about important aspects of your case. Don’t assume that they’ll remember something important later without having a reminder. This is your bankruptcy case, so do not be afraid to remind your lawyer of any key facts.
Be warned that after your bankruptcy, you may stand out as a leper to credit institutions. You may be unable to get a simple credit card. In this event, you should attempt to apply for a secured card or two. This will demonstrate that you’re seriously trying to restore your credit. Once you’ve built up a history of on-time payments, you may start getting unsecured credit again.
Ask for a free consultation with your bankruptcy attorney and ask questions about experience and education. When you arrive at a consultation ask plenty of questions. You should also seek free consultations from several attorneys prior to choosing one. Make your decision after all of your questions have been answered. Take your time before you decide to file after you meet with your lawyer. If you’re unsure, don’t hesitate to talk to multiple bankruptcy lawyers.
Before declaring bankruptcy, ensure that all other options have been considered. If your debts are really not overwhelming, you may find the assistance you need by consulting a consumer credit counselor. You should also try negotiating a payment plan with your creditors; make sure you get a written agreement of the new payment plans.
It is wise to meet with several lawyers before making a final decision, take advantage of the free consultations to find one that is a good fit for you. Ensure that you have a meeting with a real lawyer instead of an assistant, since they can provide the best advice. Seeking out different attorneys is all part of the process until you find someone that you can trust.
Learn about teh differences between Chapter 13 and Chapter 7 bankruptcy. There is a wealth of information online about each type of bankruptcy and their respective pluses and minuses. If you are confused by what you find, be sure to ask your attorney to explain anything that is unclear before you make your decision about filing.
If you are making more money than you owe, bankruptcy should not even be an option. You should know that filing for bankruptcy will ruin your credit score for at least ten years and that improving your credit score will be expensive.
Whenever you file a petition for bankruptcy, do not leave out any information about your finances or assets. If you forget to add these, your petition could be delayed or dismissed. You might think something is insignificant, but you should add it anyway. Some things to be included are: current loans, valuable vehicles and side jobs.
Consider your options before deciding to file personal bankruptcy. Credit counseling is an important option for you to pursue. There are a number of companies that will assist you, many of which are non-profit. Their job is to lower your payments and interest through negotiations with your creditors. The payments you make go to the credit counseling company, and they send that money to your creditors.
You are not alone when you are debating filing for bankruptcy. Bankruptcy can help you start over with and give you tools to become a more responsible consumer.