Filing for personal bankruptcy is an important step, which should be thought through carefully. Check out the advice found below so that you can know what you are up against when faced with bankruptcy. Research the topic extensively in advance.
Refrain from feeling shameful about your bankruptcy. The bankruptcy process can make many people feel ashamed, guilty and unworthy. These sorts of feelings are not helpful to you. Indeed, they may cause you mental anguish. A good way to deal with bankruptcy is to make sure that you keep a stiff upper lip.
If your finances are tight and you are considering filing for personal bankruptcy, why not put your plans for getting a divorce on the back burner? Many people find they need to claim bankruptcy after divorce because they did not see the financial problems that were ahead of them. If divorce is imminent in your future, then you may want to plan your finances accordingly so you are not forced to file for bankruptcy.
If you are a position where you are considering bankruptcy, take a moment to reflect on how your financial situation got this bad. A large, unplanned hospital bill can happen to anyone; however constant overspending on shopping is an issue that needs to be addressed. If your a bankruptcy was caused by the latter, it would be a good idea for you to seek assistance in areas of financial management and perhaps addiction control.
It is imperative that you know for sure that bankruptcy is the option you need. Many times a consolidation loan will ease your financial struggles. The bankruptcy process takes forever to finish and is very nerve-wracking. You will have trouble getting credit down the line. This is why you must ensure that bankruptcy is the only option left for you.
Don’t automatically assume that a Chapter 7 bankruptcy will discharge all of your debt. You may need to reaffirm certain secured debts. As a result, you must sign another agreement that says you’ll repay them. In addition, under certain circumstances, some debts can’t be discharged. Fines from courts, child support and alimony are examples on non-discharged debt.
It is in your best interest to be abreast of your rights in petitions for bankruptcy. There are bill collectors who will claim that you cannot add your debts to your bankruptcy case. There are only three main classes of debts that are non-dischargable: taxes, child support and student loans. If you are told differently by a collector, research the information yourself. If you find they are in error, get the name of their company, phone number and any identifying info so you can report it to the attorney general in your area.
Think about all your options before pulling the trigger. Ask a bankruptcy lawyer if a debt repayment plan or rate reduction would be of benefit. If you are about to lose your house, talk to your lender about a loan modification. Your creditors will be willing to work with you to allow you to pay off your debts. They may be able to take late fees off of your account, cut down your interest, or even extend the loan’s repayment period. When all is said and done the creditors just want their money, and more often than not will work with you on a repayment plan.
Realize that bankruptcy may be better for you when it comes to your credit. Continuing to miss your payments can be really bad on your debt. While bankruptcy will show up in you credit file for the next 10 years, you can begin the process of making your credit situation better right away. The main benefit to filing for bankruptcy is the chance at a new start.
After reading the previous article, it is obvious that bankruptcy is not something that takes place on its own. Bankruptcy is complex and requires you to think carefully. By using the tips in this article, you will be able to successfully file for bankruptcy and begin to rebuild your life.
It is possible to re-file for bankruptcy if your first case is dismissed due to an error. Just remember that after your case’s first dismissal, the automatic stay that you get will only last 30 days in most jurisdictions. If you can convince the judge that you have a good reason for your mistake and re-filing, you may get that stay extended.
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