Helpful Advice For Dealing With Personal Bankruptcy

by Dori Tery on January 16, 2016

It is an unfortunate that the topic of bankruptcy is quite common nowadays. The economy has only exacerbated the situation. You need to approach bankruptcy with a little knowledge so that you can make wise decisions when it comes to filing bankruptcy. This article will help you that knowledge.

You have other options available like consumer credit that consumers can use. Bankruptcy is a permanent part of your credit, so before you make such a big decision, it is in your best interest to make use of them.

Always be honest and forthright when filling out paperwork.

You may still have trouble with getting unsecured credit after filing for bankruptcy. If you find that to be the situation, it is beneficial to apply for one or even two secured cards. This will show people that you are serious about getting your credit score. After a while, you might be offered an unsecured card once again.

If a personal recommendation comes your way, get a word-of-mouth referral for a lawyer.There are a number of companies who may take advantage of your situation, and it’s important to be sure your bankruptcy can go smoothly; take your time and choose someone you can trust.

Before pulling the trigger on bankruptcy, be sure you have considered alternative options. For instance, there are credit counseling services that can help you to deal with smaller amounts of debt. You might also be able to negotiate lower payments yourself, just be sure any debt modifications you agree to are written and that you have a copy.

Chapter 13 Bankruptcy

Be sure you can differentiate between Chapter 7 and Chapter 13 bankruptcy. Chapter 7 bankruptcy is intended to wipe out all of your debt. Any ties you have concerning creditors will be dissolved. Chapter 13 bankruptcy though will make you work out a five year repayment plan that takes 60 months to work with until the debts go away.

Don’t file for bankruptcy if you can afford to pay your bills. Bankruptcy may appear like the easier way to avoid paying your old bills, but your credit report will show the scar for the next ten years.

Think about all your options before pulling the choices available to you when you file for bankruptcy.Loan modification can be helpful for those facing foreclosure. The lender can help your financial situation by getting interest rates lowered, dropping late charges, change the loan term or reduce interest as ways of assisting you. When push comes to shove, the creditors want their money, and they are willing to make concessions to get it and prevent the debtor from declaring bankruptcy.

Know the rights when filing for bankruptcy.Some bill collectors will try to tell you that your debts can’t be bankrupted. There are a few debts that cannot be cleared, such as student loans and child support, that can’t be bankrupted. If a collector tries to convince you that some other type of debt, in fact, be discharged through bankruptcy, report the collection agency to the attorney general’s office in your state.

Personal Bankruptcy

Gain all the knowledge of personal bankruptcy that you file. There are a lot of pitfalls in the personal bankruptcy that could cause you upsets. Some mistakes can even lead to having your case being dismissed. Take time to research personal bankruptcy before moving forward. This can save you a lot of time and make the bankruptcy process easier.

As mentioned, bankruptcy is a popular topic today because of the economy. Use the tips you just read to make good decisions and remain in control of your financial situation.

Comments on this entry are closed.

Previous post:

Next post: