People often shudder at the mention of the word bankruptcy. The piling on of debt and not being able to support their family is an awful situation for many to ponder. If this troubles you, or if you are dealing with this nightmare now, the following information is required reading.
Be sure you’re doing what’s right before you file for bankruptcy. You have other options, including consumer credit counseling help. Bankruptcy will leave a permanent scar on your credit report and before you take this huge step, you should search through every available option first, to help try and limit the damage to your credit.
If you know people who have filed for bankruptcy, ask them who they would recommend rather than relying on Internet reviews or worse, just randomly picking someone out of the phone book. There are many companies who take advantage of financial desperation; that is why it is important that you get someone that is trustworthy.
No good will come of trying to conceal your assets or your liabilities in the bankruptcy process; you want to be scrupulously honest when you declare bankruptcy. Your attorney and trustee should be privy to all information about your finances. Do not leave anything out and come up with smart plan to manage the situation you are dealing with.
You need to educate yourself on the differences between Chapter 7 and Chapter 13. Should you choose Chapter 7, your total debt load will be erased. All happenings with creditors will disappear. Chapter 13 is different, though. This type of bankruptcy entails an agreement to pay off your debts for five years prior to wiping the slate clean. Both options have advantages and drawbacks, so do your research before deciding.
Know and understand the difference between filing for Chapter 7 bankruptcy versus Chapter 13 bankruptcy. There is a wealth of information online about each type of bankruptcy and their respective pluses and minuses. Ask your bankruptcy lawyer to clarify anything you don’t understand before making a final decision about which type of bankruptcy to file.
Determine if bankruptcy is necessary. Perhaps consolidating your existing debt can make it easier to manage. Bankruptcy is a long process that can be stressful. It will also make it tough for you to secure credit after your filing is complete. This is why you must make sure bankruptcy is your last resort.
Do not file for bankruptcy if your income is greater than your bills. Understand that while declaring bankruptcy will eliminate many of your debts, you will have difficulty obtaining credit and will pay more in interest for the credit you do receive for at least seven years.
Filing for bankruptcy can be a very scary and intimidating experience. You may have lived in fear of it before, but you no longer have to now, thanks to this article. Use the bankruptcy information in this article to make your financial life yours again.