Should You Make The Step To Personal Bankruptcy?
Posted at by PConran on category BankruptcyAnytime you are faced with the prospects of filing for bankruptcy, it is not a good situation, but there is some light at the end of the tunnel when you get through this process. You will be able to have a fresh start after all is said and done. Keep reading to handle the bankruptcy process in a way that is a rebirth and not a financial Armageddon.
Once you file for bankruptcy, you will have a hard time getting loans or credits. If you are in this situation, applying for a secured card may be the answer. By doing this, you will be letting people know that you want to fix your credit score. Once you’ve built up a history of on-time payments, you may start getting unsecured credit again.
Research what assets are exempt from seizure before you decide to declare bankruptcy. There are some assets that cannot be seized through bankruptcy, and the law lists those assets. It is vital that you completely understand which assets are protected and which assets can be seized prior to filing bankruptcy. If you aren’t aware of this, you could lose some assets that you value.
No good will come of trying to conceal your assets or your liabilities in the bankruptcy process; you want to be scrupulously honest when you declare bankruptcy. Whomever you use to file with must know everything there is to know about your finances, both good and bad. You are in this situation, now help them to give you the best assistance possible to deal with it. You do that by giving full disclosure and holding nothing back.
You should be able to meet with a specialized lawyer for free to ask your 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. There is no need to offer an immediate hire, so take your time. This offers you the opportunity to speak with other attorneys.
Since the majority of attorneys are willing to provide no-cost initial consultations, it is smart to meet with more than one before you make a selection. Ensure that your meeting is actually with the attorney, not with a paralegal or an assistant. People in these positions are unable to offer legal advice. By shopping lawyers, you will be more likely to find one that makes you comfortable about the process.
Find out if you can use Chapter 13 bankruptcy, as it may help you better than the other laws. If your source of income is regular and your unsecured debt is less than a quarter million, Chapter 13 bankruptcy is something you are able to file for. This type of bankruptcy protects your assets from seizure and lets you repay your credits over the course of a few years. Expect to make payments for up to 5 years before your unsecured debts are discharged. Remember that if you fail to make any of the payments on time, the court may dismiss your case.
If you are making more money than you owe, bankruptcy should not even be an option. Understand that while declaring bankruptcy will eliminate many of your debts, you will have difficulty obtaining credit and will pay more in interest for the credit you do receive for at least seven years.
As stated earlier, anything that leads someone to bankruptcy is not a good story. Life after bankruptcy can be normal and happy. Actually, if you use the advice and ideas from this article, you will be able to turn bankruptcy into a turning point for your life.