As you probably know, the economy is in the toilet. A poor economy means more people than ever have debt and are losing their jobs. Rising personal debt leads, in many cases, to increased bankruptcy filings. If a family member or a loved one is on the verge of filing for bankruptcy, the following article can help you understand more about the process and whether it offers an appropriate solution.
Before filing for bankruptcy ensure that the need is there. Consolidation could be the avenue you need to get your finances back in order. Filing a claim can take a long time and cause much stress. Having a bankruptcy on your record will hinder your ability to get credit in the future. This is why you must ensure that bankruptcy is the only option left for you.
If you pick up a new job shortly before you file for bankruptcy, don't slow down your filing plans! Even with some extra cash, bankruptcy could still be your best bet. The timing of your filing is also going to be important. Post your filing before you begin earning money at your new job. In this way, your repayment means will be determined using your income prior to your new employment.
It can be difficult to obtain unsecured credit once you have filed for bankruptcy. If that is the case, you should try applying for one, or two secured cards. This will be a demonstration of the seriousness with which you view rebuilding your credit rating. Once you've built up a history of on-time payments, you may start getting unsecured credit again.
Every single asset is not necessarily lost when you file for bankruptcy. Personal property is exempt from bankruptcy claims. Some included items are: electronics, household furnishings, clothing and even jewelry. What you are allowed to keep depends on the laws of your state, the chapter under which you file for bankruptcy and how much money you owe to your creditors.
The primary catalyst for filing personal bankruptcy is having a large amount of debt that can't be readily repaid. If you're in this situation, learn about the laws where you live. When it comes to bankruptcy, states have varying laws. For example, whether or not you can keep your home, as well as what you need to do to keep it, is different for every state. You should be familiar with the laws for your state before filing for bankruptcy.
When you are considering bankruptcy, it's a good idea to give a little thought to the events that contributed to your current financial difficulties. Unexpected medical bills is one thing, but blowing money on shopping is another. If you find yourself overspending on unnecessary items, consider getting credit counseling.
Be certain that all of the debts you are presenting for consideration in your bankruptcy are actually ones that can be considered. This will save you time and money. For example, even if you file your student loans, they'll still be a part of your credit history. Instead, for this type of debt, use a credit repair agency or loan consolidation service to help reduce your debt.
Don't put everything on your lawyer. The complexities of bankruptcy law will be familiar to your lawyer. However, you will be better able to work for your own advantages if you have some basic understanding of what is happening. In a bankruptcy proceeding, the financial stakes are simply too high for you to let your attorney handle everything without your input.
A free consultation is standard for bankruptcy attorneys, so shop around before settling on one. Make sure you meet with a licensed attorney rather than a paralegal or assistant, because it is illegal for these people to give legal advice. Look for an attorney until you find one you feel comfortable with.
Some consumers filing for personal bankruptcy think they will struggle to get financing afterwards. In some cases, this might be true, but in others, your credit score may actually end up higher post-bankruptcy than it was pre-bankruptcy. After having filed for bankruptcy, it is important that you make timely payments in order to rebuild your credit scores.
Although the economy appears to be improving, there are many, like you, who are still struggling financially. Although bankruptcy can be avoided in some cases; there are other cases where bankruptcy is the only sensible option. It is our sincere hope that this article has helped you to determine a way to avoid filing for personal bankruptcy yourself, or will help a friend or loved one avoid this fate. Take this information and apply it to your personal financial situation.
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