Bankruptcy is a two-sided coin: relief/stress. A lot of people will go over your finances and find out details about your personal life. On the other, you get to enjoy the peace that comes when the bill collectors stop calling you. Here are some simple tips anyone can use to help make the process of bankruptcy go smooth.
As bankruptcy appears on the horizon, don’t take your savings or retirement accounts to try to pay off all your bills. Retirement funds should be avoided at all costs. You may have withdraw from your savings every now and then, but try to leave yourself some financial security for the future.
Do not be afraid to remind your attorney of important specifics of your case. Lawyers are people too, and sometimes they forget important information and need to be reminded. Remember that you’re the boss. You’re paying your lawyer, so you should not be afraid to have your say. After all, the quality of your life hangs in the balance.
The best way to build your credit up after a bankruptcy is making all your payments on time. Since it is important that you work to rebuild your credit, you should instead think about applying for a secured card. This will show people that you are serious about getting your credit record back in order. If you pay your secured card off on time, you’ll eventually find that companies will start offering you unsecured credit.
Don’t file for bankruptcy until your represented by an attorney. Personal bankruptcy is quite complex, and it is entirely possible that you will not be able to familiarize yourself with all the laws and processes. An attorney that specializes in personal bankruptcy, can help guide you and make sure that your filing happens properly.
Take advantage of free consultations with lawyers and the ability to sift through and find the right one. It is important to meet with the actual attorney, not the attorney’s assistant or paralegal; those people are not permitted to give legal advice It will be important to work with a bankruptcy lawyer that you feel comfortable with; a little comparison shopping will help you find the right one.
It is important to protect your home when filing bankruptcy. Filing for bankruptcy does not mean you have to lose your home. For instance, if your home value has dropped recently, or even if you happen to hold a second mortgage, you may not necessarily lose the home. If you meet certain criteria, you may be able to retain ownership of your home even after filing for bankruptcy.
Look into filing Chapter 13 bankruptcy. 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. Lasting anywhere from three to five years, this plan will allow you to be discharged from unsecured debt. Keep in mind that even missing one payment can be enough for your whole case to get dismissed.
Bankruptcy has several pros and cons. Regardless of your reasons for filing for personal bankruptcy, remember that it is a process that can be extremely helpful if you are well informed. You will have an easier time with your bankruptcy filing thanks to this article’s tips. You should experience much less stress during the bankruptcy process when you heed this sort of good advice.