Saturday, October 12, 2013

Information Everyone Should Know If They File For Bankruptcy

By Jet Eastwood


No one ever thinks that they will go through a bankruptcy. It is important to know what steps to take when your circumstances change and there's nothing you can do about it. If you get yourself in this type of situation, you will surely find the information in this article very helpful.

Millions of Americans file for bankruptcy each year because they can not pay their bills. If this sounds familiar, you should read up on the bankruptcy laws in your state. Each state has its own laws regarding personal bankruptcy. In certain states if you file for bankruptcy your home remains protected, but the laws vary depending on where you reside. It is important to understand the laws in your state before filing for bankruptcy.

Getting unsecured credit post-bankruptcy will likely be difficult. Since it is important that you work to rebuild your credit, you should instead think about applying for a secured card. Having a credit card of any type will allow creditors to realize that you're attempting to work in the right direction to repair your credit. After using a secured card for a certain amount of time, you might be offered an unsecured card once again.

Before undertaking the bankruptcy process, ensure you have made the correct decision. You have other choices, including consumer credit counseling and using an business accounting software. Be sure to consider all options before filing for personal bankruptcy, as this will take a large toll on your credit score for the next ten years.

If you're filing for bankruptcy soon, be sure you are going to hire a lawyer. The topic of bankruptcy is a complicated one and it is important that you know all about it. An attorney will make sure that everything is being done correctly.

Be certain to grasp the distinction between Chapter 7 and Chapter 13 bankruptcy cases. All debt will be eliminated with Chapter 7. You will no longer be liable for any money that you owe to your creditors. If however you enter Chapter 13, you will go into a five year repayment program prior to your debts dissolving entirely. You need to be aware of the pros and cons of each type of bankruptcy so you can correctly select the best choice for your situation.

Instead of getting your lawyer from the yellow pages or on the Internet, try your hardest to find one with a personal recommendation. Companies are constantly popping up, claiming to help, yet only seek to profit from your misery. In ensuring that your bankruptcy is as simple as possible, trusting your attorney makes a big difference.

After you have filed for bankruptcy, enjoy your life. It's not uncommon to be overwhelmed by the filing process. The stress of dealing with bankruptcy could cause you to fall into a depression, unless you take steps to take care of yourself. Your life will most likely improve once you're over this hump, so relax.

You have probably realized that you should carefully evaluate your decision to file for bankruptcy before proceeding. If you think it is the right choice for you, find a lawyer that can properly guide you through the process and give you a new leash on life.




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