Although unhappy circumstances in your life might have led you to file for bankruptcy, your life post-bankruptcy can be much better. The main purpose is to give yourself a fresh, new start in life. Read this article to find out how to use bankruptcy for a chance at financial rebirth.
Generally bankruptcy is filed when a person is facing insurmountable debt. Study the laws in you state to learn what you need to do and what your options are. There are greatly varying laws concerning bankruptcy, so it is important to make sure you are getting the correct information. Your house is safe in certain states; however, in other states, it isn’t. Become acquainted with local bankruptcy laws before filing.
Make sure that you understand everything you can about personal bankruptcy by visiting websites that offer information. Many sites, including the U.S. Department of Justice, American Bankruptcy Institute, along with many other websites can provide you with the information you need. The more you know, the better equipped you’ll be to make the wise decisions needed for a successful bankruptcy.
A lot of people find themselves needing to file bankruptcy when they are unable to pay their bills. When you are faced with this issue, begin to familiarize yourself with your state’s laws. Every state has a separate law having to do with bankruptcy. For instance, in some states you can keep your home and car, while other states prohibit this. Do not file before learning about the bankruptcy laws in your state.
Make sure you are always providing honest documentation whenever you have to file for personal bankruptcy. You may be tempted to try to hide income and personal assets from discovery, but doing so often leads to major complications, monetary penalties and the possibility that your case will be thrown out of court.
There are differences between Chapter 13 bankruptcy and Chapter 7; be sure to familiarize yourself with both. Research both types of bankruptcy online, and weigh the positives and negatives each would offer you. If you don’t understand the information you researched, consult with your attorney about the details before you decide which type of bankruptcy you want to file.
Avoid exhausting your savings or emptying your retirement accounts to pay off creditors if you are considering filing for bankruptcy. Avoid ever touching retirement funds until you have no other choice. Dipping into savings may need to happen, just don’t totally wipe it out, or you might not have much financial security later.
Remember to spend some quality time with your loved ones. Bankruptcy can really wear down your emotional reserves. The long process can leave people stressed out and racked with guilt and shame over having their financial affairs laid out for everyone to see. There are a number of people who wish to go into seclusion while undergoing the process of personal bankruptcy. However, you will only feel worse about what has happened, which may lead you into depression. For this reason, if you are undergoing personal bankruptcy proceedings, you must continue to live a normal life, spending time with your friends and relations.
Before ultimately deciding whether or not to file for bankruptcy, be sure to weigh the different options available to you. You may qualify for alternatives such as debt repayment plans or interest rate reductions. Ask your bankruptcy attorney about these options. Loan modification can help you get out of foreclosure. Your particular loan holders can provide a lot of assistance if you’re just willing to speak with them. You can negotiate lower rates, longer terms, and other means of repayment that may keep you from having to file a claim. Creditors want their money. Often, they are willing to work out repayment plans with you in order to get it.
If you are moving forward with a Chapter 7 bankruptcy, you need to learn how that can negatively affect anyone who shares loans with you. Once you have filed Chapter 7, you, by law, are not responsible for any of your debts that also include your co-debtor. Your creditors can then come after your co-debtor for full repayment of the debt.
Never pay to have a consultation with a lawyer, and ask a lot of questions. Free consultations are standard practice among bankruptcy lawyers, so interview multiple candidates before making a final decision. Only choose an attorney once all your concerns are answered to your satisfaction. It is not necessary to make a final decision right away. Consulting with several attorneys will also help you find someone you trust.
If you are in the midst of a Chapter 13 bankruptcy, it is possible to apply for certain loans. It is much harder. You need to contact your trustee so you can get approved for a new loan. You need to develop a budget and show that you will be able to afford the new payment. You should also be prepared to explain why you need to purchase the item.
As mentioned, the events that cause bankruptcy are not happy. However, the story that gets written after bankruptcy does not have to be depressing too. By using the tips from the above article, you can turn bankruptcy into a positive turning point.
Do you want to pay off your debt and be financially free for the first time in a long time? If that’s you, the most critical factor to make it happen is to adjust your mindset. Mr. Orrin Woodward is one of most respected authority in balancing different aspects of life to build stronger, sustainable, and repeatable profitable business from home. He is also one of the co-founders of the LIFE business.