When you decide to file for personal bankruptcy, it is a very serious decision that should not be entered into lightly. Check out the advice found below so that you can know what you are up against when faced with bankruptcy. Prepare yourself by learning as much as possible beforehand.
Never take big cash advances from the credit cards that you own prior to filing for bankruptcy, even though you know that the debt will be erased. To do this would be considered fraud. Even after filing for bankruptcy, you might be forced to repay money gained in this manner.
Don’t file for bankruptcy the income that you get is bigger than your bills. Although bankruptcy may feel like a simple method of getting out of your large debt, it leaves a permanent mark on your credit history for up to 10 years.
After you’ve filed for bankruptcy, it is important to begin building your credit score by obtaining a credit card. Using secured credit cards allows you to do this even if your current credit score is extremely poor. These cards usually have exorbitant interest rates and fees, but this is unavoidable for the first couple of years after bankruptcy. You can improve your credit in preparation for future loans and accounts by maintaining a credit line and keeping up with its payments.
If you wish to file for bankruptcy in the near future, credit cards shouldn’t be used. Although you may have the urge to go out and buy something, this is not something the courts take kindly to. Always demonstrate the utmost financial responsibility when going into a bankruptcy filing. You’re going to need to practice better habits to avoid filing again in the future, so you might as well start now.
Begin seeking a supplemental job. Hold off on bankruptcy, instead speak with your creditors and let them know you’re serious about paying all the money back if you can get some more time. Your creditors will likely be willing to accommodate you, freeing you from the need to declare bankruptcy.
Hire a bankruptcy lawyer with experience in the subject. There are a plethora of law firms that you could work with. The inexpensive lawyers will probably fail in the knowledge department. Avoid the temptation to jump on board.
Once the bankruptcy is a few months old, you should re-evaluate your credit with all three of the credit bureaus to confirm accuracy. You want to see an accurate record of the closure of your accounts and the discharge of your debts. Challenge discrepancies as soon as possible in order to repair your credit.
Make sure to list all of the debts you are responsible for when you retain a lawyer to handle your bankruptcy case. Although this would mean that you would be telling him information regarding credit card companies, lenders and hospitals, it also means that you would tell him any information about you owing money to friends and families.
Choose the best bankruptcy attorney in your area. Once you have located one, find out if their initial consultation is free. If they do, gather up all of your financial statements, and take a trip to see them. A good attorney will answer any questions you may have about the process.
Make sure that you disclose every bit of financial information on your bankruptcy petition. Failing to disclose all of your financial information can cause your bankruptcy petition to be dismissed, or, at the very least, delayed. Even small amounts of money contribute to your overall financial picture, so do not exclude them. Include all jobs, assets and loans.
Be completely honest whenever you file for personal bankruptcy. Hiding any asset or liability is a risk that will bite you in the end. Your bankruptcy lawyer has to know every detail of your finances, whether bad or good. Lay everything out on the table so that you and your lawyer can devise a plan to get you out of this mess.
As you’ve read, bankruptcy isn’t as simple as it might sound. When you file for bankruptcy, things must be done the right way. By following the above advice, you will make fewer mistakes and find yourself better prepared.
Before you file for personal bankruptcy, take great care in paying off your debts. You may find that bankruptcy law prohibits you from paying back some types of creditors for 90 days before you file, and a year for family members. Know what the laws are prior to making any payments.
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