Tips For Navigating The Process Of Personal Bankrupcy
Posted at by PConran on category BankruptcyThere is hope for a better life after bankruptcy, no matter the unpleasantness that went before. The bankruptcy laws allow you to have a second chance at building your credit and meeting all your financial responsibilities. Read this article to find out how to use bankruptcy for a chance at financial rebirth.
You can find a wealth of information concerning personal bankruptcy by searching for websites which offer information about it. The US Department of Justice and American Bankruptcy Institute are two such places to look. You need to spend some time gathering valuable information so you can file your bankruptcy with confidence.
Before undertaking the bankruptcy process, ensure you have made the correct decision. There are plenty of other options open to you, like consumer credit counseling. Bankruptcy stays on your credit for a whole decade, so if there are less drastic options that will solve your credit problems, it is in your best interest to make use of them.
Prior to filing for bankruptcy, research which assets will remain exempt from creditors. You can find a listing of the asset types that are excluded from bankruptcy in the Bankruptcy Code. You need to compare this list to the assets you own so that you are not surprised when certain assets are seized. If you fail to go over this list, you may be unpleasantly surprised sometime down the road if any of your most valued items are seized.
Before declaring bankruptcy, be sure you’ve weighed other options. One example would be that a consumer credit program for counseling if you have small debts. Negotiating with creditors is another option, but creditors are notorious for “forgetting” these agreements, so get them in writing!
Learn about teh differences between Chapter 13 and Chapter 7 bankruptcy. Take time to research this online and see the pros and cons for filing each one. If anything you see is unclear or doesn’t make sense, go over it again with your attorney before making the final filing decision.
Make time to visit with family and friends during the bankruptcy process. Filing for bankruptcy is a difficult process. It’s generally stressful, lengthy and can make people feel guilty, ashamed, and unworthy. It is not uncommon for a person to feel the need to pull away from loved ones during the process. However, you will only feel worse about what has happened, which may lead you into depression. Thus, you must keep living your life and socializing with those you love, no matter what is going on with your bankruptcy.
Before you file for personal bankruptcy, weigh all of your options. Some alternatives to filing for personal bankruptcy include debt repayment plans, interest rate reduction plans, and debt consolidation. Talk with the personal bankruptcy lawyer to find out more. If foreclosure looms, think about getting your loan plan modified. Lenders can assist you in a lot of ways, by cutting interest rate charges and cutting off late fee charges. They can also lengthen the loan. Creditors want their money. Often, they are willing to work out repayment plans with you in order to get it.
As stated in the above article, anytime someone is forced into bankruptcy is never a happy situation. It doesn’t have to be that way after bankruptcy. Follow the advice from this article, and use personal bankruptcy to get your fresh start.