The Impact Of A Personal Bankruptcy On Your Credit
Posted at by PConran on category BankruptcyWhen you are drowning in debt, you may find yourself scared. It is all too easy to let your debts get out of control and take over your life. When you find yourself in such a position, it can be hard to know what to do. The article you are about to read will give you advice on dealing with your debts through bankruptcy.
Filing for bankruptcy is something many people are forced to do when there debts become too much of a burden, and they can no longer afford to pay them. If this describes your situation, it makes sense to become familiar with relevant laws. Different states use different laws when it comes to bankruptcy. In a few states, they see to it that your house is protected. This is not the case when it comes to other states. It is best to become familiar with your state’s laws regarding bankruptcy before you take the steps to file.
Always be honest when filling out paperwork. Resisting the temptation to hide income or valuable assets from the bankruptcy trustee is a smart way to avoid potential complications, penalties, and the possibility of being barred from re-filing in the future.
Don’t be afraid to remind your lawyer about important aspects of your case. Lawyers are people too, and sometimes they forget important information and need to be reminded. Speak up. This is your life, and your future depends on it.
It’s not uncommon to learn soon after bankruptcy that you are unable to get an unsecured credit card easily. If you do, then try applying for a coupe of secured cards. That will show lenders that you are committed to rebuilding your credit. When you have done well with secured cards for a while, you should be able to obtain an unsecured credit card.
Instead of relying on random selections from the phone book or Internet, ask around and get personal recommendations. Some companies just want to take advantage of you, so it is important that you have help from someone you trust.
Consider other alternatives before filing for bankruptcy. Those with smaller debts may find use in a program for consumer credit counseling. It may also be possible to get lower payments, but if you do, be sure to obtain records for any consensual debt modifications.
Make certain that you comprehend the differences between Chapters 7 and 13. If you file using Chapter 7 bankruptcy, you will get all your debts eliminated. All the things that tie you to creditors will go away. Chapter 13, on the other hand, involves a five year payment period before any remaining debts are cancelled. You need to be aware of the pros and cons of each type of bankruptcy so you can correctly select the best choice for your situation.
Understand the differences between a Chapter 7 bankruptcy and a Chapter 13 bankruptcy. Get a good grasp of the pluses and minuses each type of filing involves by researching both of them extensively. Once you have done your own research, be sure to review your findings with your lawyer, who is the expert. This way, you can be sure of making a well informed choice.
There are often times when you feel that you have very little control over what is happening to you. The above article has provided you with advice to allow you to handle your finances and deal with the option of bankruptcy. Use what you’ve learned here to give yourself a second chance.