There is hope for a better life after bankruptcy, no matter the unpleasantness that went before. The main purpose of filing is to start a new and improved financial situation. Read on for how to make the bankruptcy process be a rebirth instead of financial Armageddon.
Don’t be afraid to apply for credit for purchases such as a new home or car just because you have a recently discharged bankruptcy. Many lenders will take your new financial situation into account. They may be more likely to loan money to someone who has no debt due to a bankruptcy than to the person with, say, 75,000 dollars in credit card debt. The fact that you have no monthly credit card payments can make you look like a better risk.
When you file for bankruptcy you limit your options for many future loan options. Many banks do not forgive bankruptcy and it shows on your credit report for 10 years. Think twice before making the decision to file for bankruptcy. You might want to defer your bills for a couple of months, instead of hurting your credit for 10 years.
Before you file for bankruptcy, carefully consider if it is the right option for you. Alternatives do exist, including consumer credit counseling. Bankruptcy permanently affects your credit, so avoid filing until you have exhausted all of your other options.
Don’t wait too long to file for bankruptcy. So many people suffer with debts, and sleepless nights for years. They could have filed for bankruptcy, and been in the clear by now. If you are thinking about filing for bankruptcy, time is of the essence. Make the decision so you can move on that much quicker.
If you are trying to rebuild credit after filing for bankruptcy, you should apply for secured credit cards. These can help you establish credit, but you have to make sure that they are one of the companies that report to the major credit bureaus, since all of them do not.
Educate yourself about the bankruptcy process. You can increase your knowledge of the bankruptcy process by conversing with a bankruptcy attorney or by carrying out independent research on the internet. Whichever method you chose to increase your knowledge of the bankruptcy process, it is vital that you comprehend how filing for bankruptcy will affect yourself, your family and your creditors.
Before you decide to file for bankruptcy, be sure to obtain a free consultation with a bankruptcy attorney. Depending on where you live, you have the right to speak to an attorney before filing. Any good attorney will offer a first appointment free. This is an important consultation, as you will need the answers to many questions. These may include: attorney fees, what type of bankruptcy to file, and what types of information, paperwork you will need to provide. Most importantly, an attorney will be able to determine if filing for bankruptcy is the right decision for you.
Take advantage of the opportunity to consult with a number of bankruptcy lawyers who offer the first visit at no charge. Just be sure that the person you speak with really is the lawyer, rather than a paralegal, since they cannot legally give advice. Look for a lawyer who you can relate to.
If you are unsure about the paperwork that you need to bring with you when you meet with an attorney, ask. Also, inquire as to whether the lawyer you are meeting with offers free consultations. You do not want to be surprised by a large fee just for them taking a look at your case.
Consider if Chapter 13 bankruptcy is an option. You are eligible for filing bankruptcy under Chapter 13 if you work and owe less than $250,000. This type of bankruptcy protects your assets from seizure and lets you repay your credits over the course of a few years. Generally, this stays in effect for up to 5 years. Afterwards, your unsecured debts clear from your accounts. Missing a payment under these plans can result in total dismissal by the courts.
Again, it is likely that whatever precipitated a bankruptcy filing was not something on which you look back fondly. That said, filing for bankruptcy can be a positive turning point in your life. Actually, by using the advice you’ve learned here, your story of hardship could have a happy ending after all!