Nobody wakes up and says “I think I’ll get myself into debt and file for bankruptcy when things get too hot to handle.” Sometimes it’s the only way out of a nasty financial mess. It is unfortunate to find yourself in this position, but this article is here to help get you started in the right direction.
If you have no other choice but to file bankruptcy, do not feel ashamed about it. Many people will get depressed and think they’ve failed when they need to file. After you consider all the factors involved and determine that this is your only solution, then try to convince yourself that this is actually a positive first step in securing your financial future.
If keeping your vehicle is of great concern, ask your lawyer if you can secure a payment modification. Chapter seven bankruptcy often provides for the lowering of payments. The car loan must have been initiated prior to 910 days before your petition. It must carry a loan with high interest. You should also have a steady history of work.
Once you have filed for bankruptcy, you will want to open a new line of credit, as soon as possible in order to start the credit repair process. Although establishing this is hard when you have bad credit, a good option is to get a secured credit card. These cards often charge very high rates, but you are likely to pay a higher rate, regardless of the source of your credit. You can improve your credit in preparation for future loans and accounts by maintaining a credit line and keeping up with its payments.
There are some debts that a bankruptcy will not eliminate. Some debt, such as student loans, will remain on your credit history regardless of if you file. Rather than sending a student loan through the bankruptcy process, you should consult with a credit counseling agency to see if the payment can be lowered.
Every single asset is not necessarily lost when you file for bankruptcy. Personal property can be kept. Some things you can keep include your clothing, furniture, jewelry and electronics. While this varies based on the laws in your area, your particular circumstances and the kind of bankruptcy you choose to go with, it may be possible to keep big-ticket items like your automobile or even your residence.
Be sure to be transparent with your bankruptcy attorney in regards to the number of creditors you have and who these creditors are. 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.
Once you realize you are headed towards bankruptcy you will need excellent advice on what are the correct steps to take. Your process will be easier if you have the information. This article has given you a lot of information that will help you succeed during the filing process and beyond.
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