Any situation leading to bankruptcy may not be happy, but your life can improve afterward. Wiping the slate clean means having a new lease on life. Read on for how to make the bankruptcy process be a rebirth instead of financial Armageddon.
Examine all of the possible options available to you before you choose to file for bankruptcy. By analyzing your debt, you’ll be able to determine which of your debts can be discharged via personal bankruptcy filing. Certain debts, such as credit card debt for non-essential items, may not be discharged if they were incurred within 90 days of declaring bankruptcy. Always keep up with the laws your state has placed in effect.
If you’re filing for bankruptcy soon, be sure you are going to hire a lawyer. Bankruptcy is a complex process, and you probably don’t know all the information that is required to navigate it. A specialized bankruptcy lawyer can ensure that you are handling your bankruptcy filing the right way.
Try to make certain you are making the right choice prior to filing your petition. There are plenty of other options open to you, like consumer credit counseling. Before you take the drastic move of filling for bankruptcy and living with a long lasting bad credit history, make sure to consider using another way that may not be as damaging to your credit.
Before filing bankruptcy consider every available avenue. Maybe you can just consolidate debt to make it simpler to deal with. Filling for bankruptcy is a lengthy, stressful process. Having a bankruptcy on your record will hinder your ability to get credit in the future. This is why you must make sure bankruptcy is your last resort.
Make sure you have gone over all your options before the dreaded credit harming step of filing for bankruptcy. Many creditors are willing to settle a debt for a percentage of what you owe, or negotiate a workable re-payment plan. You may be able to save money this way, and it will certainly be better for your credit score. Prior to filing for bankruptcy, it makes sense to investigate debt consolidation options.
Think about getting a second job. Try discussing your situation with your debtors. Let them know that you’re making a good faith effort to repay them and that you need more time. Letting them know that working with you will help you avoid bankruptcy should encourage them to work with you.
When you talk to a bankruptcy attorney, it’s vital that you give him information about all the people that you owe money. It can be easy to forget debts you owe to friend and family members while getting all of your paperwork together, so be sure to mention it to your lawyer.
Try applying for a new line of credit or credit card to start building up your credit history after a bankruptcy. Secured credit cards provide those with poor credit the option of rebuilding their credit, without going more into debt. The interest rates will be higher than normal, but then again due to your history you are not going to be able to obtain normal interest rates anyway. Having a line of credit that you pay on regularly will show other creditors that you deserve their credit.
As said previously, a situation leading to bankruptcy can be upsetting. But, just because you ended up in this dark place does not mean that the sun cannot shine once more. If you put the ideas you learned in this article into practice, you can write a whole new financial story and live happily ever after.