It is easy for consumers to fear a lack of financing being offered to them after filing for personal bankruptcy. Although your financial future is not in the best situation possible after you file, it is still possible to build your credit score back up. From here on out you have to be truly responsible and pay all of your bills on time. Filing for bankruptcy must not be taken lightly. If you take a few moments to check out the different tips and tactics listed in the text below, you can begin to realize how to navigate your way through the tough mine field that is bankruptcy. Learn everything you can prior to doing anything.
You can be engulfed with an assortment of emotions when you have to file for bankruptcy. They may feel trapped in their debt, wondering how to survive the next day. This article will show you some of the best ways to cope with having to file bankruptcy.
Make sure your bills are always paid by their due date and don’t simply pay the minimum amount if you want to keep bankruptcy at bay. Making the minimum payments will lower your credit score and paying your debts back will take a very long time. Even though many of your debts are eliminated through Chapter 7 bankruptcy, not all debts go away. Certain debts are secured and will have to be reaffirmed through a new agreement: for instance, student loans cannot be erased by filing for bankruptcy. You cannot get child support, court sanctioned fines and alimony payments dismissed through Chapter 7. Remember to do your homework. If you decide to file your bankruptcy petition without the assistance of an attorney, educate yourself on the rules. If you are going to do it yourself, you must be sure you understand everything there is to know about bankruptcy law and procedure. Realize, however, that people who file on their own often make mistakes that prevent the process from going forward. You must have all your information and ducks in a row.
Make sure you are aware of your attorney’s actions when you are going through bankruptcy. Talk on the phone or send emails on a regular basis to stay informed. High volume legal practices are not immune to making mistakes now and then. Contrary to popular belief, attorneys are just human too. Avoid filing for bankruptcy if you make more money than your monthly bills. Sure, bankruptcy can get rid of that debt, but it comes at the price of poor credit for 7-10 years. See if there is an alternative you can use before declaring bankruptcy. For example, if your debt is small, try a type of consumer counseling program. You can also talk to creditors and ask them to lower payments, but be sure to get any debt agreements in writing.
When filing for bankruptcy, make sure that you hire a lawyer to represent you. A legal professional can help quell any confusion you have about the process. An attorney can also complete the required paperwork and provide advice as you go through the process.
When filing for Chapter 7 bankruptcy, you should never automatically think your debts will be dismissed. Secured debt will have to be reaffirmed, meaning you must come up with a brand new agreement which shows a new payment plan, while other debts you cannot discharge. Chapter 7 does not eliminate child support payments, alimony, or court-imposed fines. Stop using credit cards as soon as you decide to file for bankruptcy. While you may think that you will soon be able to write off that debt, it will quickly come back to bite you when the court looks at how financially irresponsible you have been. Be responsible and do not incur any further debts. Now is the best time to begin displaying smart financial behavior.
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