Nowadays, the economy is not in very good shape. When there is a bad economy there are a lot of people losing their jobs and having problems with debt. Debts can result in filing for bankruptcy, which can seem to be a terrible thing. If you’re considering bankruptcy, the following article can help you make some sense out of it.
Before filing for personal bankruptcy, make sure you are doing the right thing. You have other options, including consumer credit counseling help. Bankruptcy stays on your credit for a whole decade, so if there are less drastic options that will solve your credit problems, it is in your best interest to make use of them.
Be aware that getting unsecured credit is going to be tough once you’ve gone through bankruptcy. Since it is important that you work to rebuild your credit, you should instead think about applying for a secured card. This will prove that you want to improve your credit score. If you pay your secured card off on time, you’ll eventually find that companies will start offering you unsecured credit.
Prior to filing your bankruptcy petition, go over the list of assets that cannot be seized by creditors. The Bankruptcy Code lists assets considered exempt from being affected by bankruptcy. Be well prepared for bankruptcy by reviewing this list. It will tell you whether are not the things you value most are subject to seizure. If you don’t read it, you could have nasty surprises pop up later due to your prized possessions being seized.
Do not give up. If you file for bankruptcy, you might be able to reclaim certain property that has been repossessed, such as your car, electronics or jewelry. If your personal property was repossessed within 90 days before your bankruptcy filing, you may have a chance of getting it back. Get help from your lawyer to file a petition so you can get your items back.
Don’t pay for an attorney consultation and ask him or her anything you want to know. Most lawyers offer free consultations, so consult with a few before settling on one. Only make a decision after you have met with several attorneys and all of your concerns and questions have been addressed. After your consultation, take your time to make your decision. This will give you extra time to interview several attorneys.
If you are concerned about keeping your car, check with your attorney about lowering the monthly payment. Often, you can negotiate a lower payment through bankruptcy. But, your car has to have been bought at least 910 days before you file. Also, it must come from a high interest loan and you have to have been consistently working.
The economic recovery has bypassed many people, leaving their finances in disarray. Even if you do not have a lot of money, there are many ways to prevent filing for bankruptcy. Hopefully, after reading this article, you picked up on a few of the things that will help you avoid filing for bankruptcy. Hopefully, you have the best luck.