Nobody wakes up and says “I think I’ll get myself into debt and file for bankruptcy when things get too hot to handle.” Changing circumstances often create a situation where there is no better choice, and knowing how to deal with it is important. If you have found yourself facing bankruptcy, this article can help you know what you should do.
Prior to filing for bankruptcy, be sure you have investigated all of your alternatives. You can also avail yourself of other options, such as consumer credit counseling. 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 suspect that bankruptcy filing may be a reality, don’t try to discharge all your debt in advance by emptying your retirement or saving accounts. You shouldn’t dip into your IRA or 401(k) unless there is nothing else you can do. Dipping into savings may need to happen, just don’t totally wipe it out, or you might not have much financial security later.
Always remind your lawyer of specifics that are important to your case. Don’t assume that he’ll remember something from a month ago; tell him again. 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.
After filing for bankruptcy, you may have difficulty getting approved for unsecured credit. If you do, then try applying for a coupe of secured cards. By doing this, you will be letting people know that you want to fix your credit score. After a while, you may be able to get unsecured credit again.
Consider filing a Chapter 13 bankruptcy. If you are receiving money on a regular basis and your unsecured debt is under $250,000, you may be able to file Chapter 13 bankruptcy. Declaring bankruptcy can assist you in consolidating your debt so you can repay it more easily. Expect to make payments for up to 5 years before your unsecured debts are discharged. Remember that you must make every payment. Missing even one could cause the court to dismiss your case.
Good advice is important when filing for bankruptcy. Adding to your fund of bankruptcy knowledge helps to make the whole process easier. With the tips from this article, you should be well-prepared to handle anything bankruptcy related.