Navigating The World After Declaring Personal Bankruptcy
Posted at by PConran on category BankruptcyBankruptcy is a hard decision, but sometimes a necessary one. The best way to approach the situation is with an education about the process. Continue on for some helpful information from people who have dealt with the bankruptcy process themselves.
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 you’re in this position, it is a good thing to familiarize yourself with the laws that apply in your area. Each state has its own laws regarding personal bankruptcy. For instance, your home might be protected in some states while you might lose it in others. Know what the laws are in your state before filing.
If you are going through a bankruptcy do not fall victim to guilt and pay off debts that you do not need to pay. You should never touch your retirement accounts, unless you have absolutely no choice. Though you may need to use a bit of your savings, try hard to maintain some of your reserves so that you have some degree of flexibility going forward.
Before making your decision to file for bankruptcy, double-check to see if other, less drastic options could make sense. For example, if your debt is small, try a type of consumer counseling program. It is sometimes possible to negotiate smaller payment by yourself. If you do this, make sure you save a written record of debt modifications that are negotiated.
Remember to understand the differences between Chapter 7 bankruptcy and Chapter 13 bankruptcy. All debt will be eliminated with Chapter 7. You will be removed from any contracts you have with your creditors. Bankruptcy under the rules of Chapter 13, on the other hand, require you to work out a payment arrangement to pay back the agreed upon amounts. It’s important to know what differences come with every type of bankruptcy. This will let you find out what’s best for you.
Do not let bankruptcy consume you, make sure you make time for your friends and family. The bankruptcy process can be brutal. It’s generally stressful, lengthy and can make people feel guilty, ashamed, and unworthy. Most people adopt a very negative attitude toward bankruptcy. But, keeping to yourself is likely to cause even greater sadness and despair. Remember that it is not your families fault for your financial hardships and use this time to pull together and be strong.
After your initial filing, take time to enjoy yourself a bit and get your mind off of it. The filing process is extremely stressful for a lot of the people who go through it. It is essential to cope with this stress well, to prevent becoming depressed. Bankruptcy is hard to go through, but you must remember that a less stressful, more enjoyable life is waiting on the other side of it.
Nobody wishes to file for bankruptcy, but there are cases where it is simply necessary. Having read the thoughts presented here, you can rest assured that you have received information from someone who has faced the very difficulties you face today. Making time to educate yourself from anyone who has gone through this before can make your personal trip through this less stressful.