Tips On Fixing Your Finances After Bankruptcy
Posted at by PConran on category BankruptcyRepossessions, late fees and legal action due to financial hardships can be difficult to bear. If you want to put an end to the annoying calls, the threatening letters, and other intimidation tactics, filing bankruptcy may be your only out. Keep reading for tips that will help you navigate the process successfully.
Many people need to file for bankruptcy when they owe more money than they can pay off. If you are in this position, you need to be familiar with the laws in your area. Laws differ from one state to the other. In a few states, they see to it that your house is protected. This is not the case when it comes to other states. Know what the laws are in your state before filing.
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. Avoid ever touching retirement funds until you have no other choice. Although you may need to tap into your savings, you should not use up all of it right now and jeopardize the financial security of your future.
If possible obtain a personal recommendation for a bankruptcy lawyer instead of randomly choosing one. There are way too many people ready to take advantage of financially-strapped individuals, so you must ascertain that your attorney can be trusted.
Never pay to have a consultation with a lawyer, and ask a lot of questions. Most attorneys offer free consultations, so meet with a number of them before you retain one. Decide which lawyer you like best buy reviewing all of the lawyers’ answers to your questions. Choose the lawyer who addressed your issues the best. You do not have to give them your decision right after the consultation. That gives you the chance to speak to a number of lawyers.
Carefully consider filing for bankruptcy on loans that have a co-signer, especially if that co-signer is a business associate, close friend or relative. Once you complete a Chapter 7 bankruptcy, you will be free of any responsibility of debt, which could put all responsibility on someone close to you. Sadly, this will not be the case for your co debtor. Your creditors may simply turn their attention to your hapless acquaintance.
Be certain you are totally aware of the laws of bankruptcy before you file. For instance, for 365 days before filing, no one is able to receive assets from the filer. Also, it is against the law for a person to acquire more debt on their credit card prior to filing.
Never take big cash advances from the credit cards that you own prior to filing for bankruptcy, even though you know that the debt will be erased. That is considered fraudulent behavior, and you can still have to pay the credit card back, bankruptcy or no.
Ask your bankruptcy lawyer if they have a telephone number for you to refer all debt collectors when they call about your debt. By giving them the information, they can inform creditors that your debt will be covered by bankruptcy. That notification then puts them on notice that they need to desist from contacting you about this debt anymore.
Although personal bankruptcy is always an option, do not pursue this before looking into other avenues. Be wary of debt consolidation companies who can drive you even further into debt. Use the tips you learned from this article to improve your financial situation and stay away from debt.