How To Rebuild Your Credit After Filing Bankruptcy
Posted at by PConran on category BankruptcyConsider all options before deciding to file for personal bankruptcy. Consider any other options that are available to you, such as consumer credit counseling. Since your credit history will forever note the bankruptcy, you want to make sure that you have tried everything else before you take an action such as this, in order to minimize the effect it will have with regard to your credit history.
Never lie about anything in your bankruptcy petition. To avoid problems, penalties and future re-filing bans, resist the urge to hide documentation or assets.
It can be difficult to obtain unsecured credit once you have filed for bankruptcy. Secured cards can be a great way to get started if this happens to you. That will show lenders that you are committed to rebuilding your credit. Then, in time, it may be possible for you to obtain an unsecured credit card.
It is important to list all your assets and liabilities during the bankruptcy proceeding. Failure to do so will only cause you problems in the end. Wherever you file, that court has to be made aware of all details regarding your finances, positive and negative. Do not hold anything in secret and create a strategy on how you will deal with the things you are facing.
Don’t pay for the consultation with a lawyer who practices bankruptcy law; ask a lot of questions. Since most attorneys offer free consultations, meet with a few attorneys before deciding who to hire. Make your decision after all of your questions have been answered. You don’t have to make your decision right after this consultation. You can take your time and check out several attorneys before making your final selection.
It is imperative that you retain an experienced attorney if you are planning to file bankruptcy. Filing for bankruptcy is a complicated procedure, and you may not be aware of all the ins and outs. Personal bankruptcy attorneys can help make sure everything is done properly.
Be sure to weigh all of your options before deciding to file for personal bankruptcy. For example, consumer credit counseling services can often help you figure out a workable repayment plan with creditors. You could even negotiate for lower payments. However, you should ensure that you always obtain a written record of all the changes to your debt that you’ve agreed to.
Be sure you know how Chapter 7 and Chapter 13 differ. Every one of your debts will be gone if you decide to go with Chapter 7. Your responsibilities to your creditors will be satisfied. Chapter 13 is different, though. This type of bankruptcy entails an agreement to pay off your debts for five years prior to wiping the slate clean. It is important that you understand the differences between the different types of bankruptcy, so that you can decide which option is best for you.
You can take steps to hang onto your house. It isn’t inevitable that you will lose your house when you file for bankruptcy. Depending on if your home’s value has gone down or if it has a second mortgage, you might be able to keep it. Additionally, some states have homestead exemptions that might let you keep your home, provided you meet certain requirements.