Deciding If Personal Bankruptcy Is Right For You – Issues To Consider

August 2, 2013

TIP! It’s not uncommon to learn soon after bankruptcy that you are unable to get an unsecured credit card easily. If you are in this situation, applying for a secured card may be the answer.

Bankruptcy can be tough. When you are dealing with financial stress, you come to the realization there aren’t many options. However, do not give in to despair. There is a way to get your financial difficulties under control and this article will show you how to get started.

TIP! If possible obtain a personal recommendation for a bankruptcy lawyer instead of randomly choosing one. Companies are constantly popping up, claiming to help, yet only seek to profit from your misery.

Once the bankruptcy is complete, you may find it difficult to receive unsecured credit. If this happens to you, think about applying for a couple of secured credit cards. By doing this, you will be letting people know that you want to fix your credit score. After using a secured card for a certain amount of time, you might be offered an unsecured card once again.

TIP! Don’t be tempted to race toward a bankruptcy without taking time to make sure it is the right thing for you to do. Consolidating current debt could make it easier to manage.

Instead of getting your lawyer from the yellow pages or on the Internet, try your hardest to find one with a personal recommendation. There are a number of companies who may take advantage of your situation, so always work with someone that is trustworthy.

TIP! Consider Chapter 13 bankruptcy, if you chose to file. 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.

Don’t give up. Bankruptcy might help you get back things you thought you’d lost and had repossessed, such as electronics, vehicles and jewelry. Filing for bankruptcy may allow you to regain ownership of recently repossessed property. A qualified bankruptcy attorney can walk you through the petition process.

TIP! If keeping your vehicle is of great concern, ask your lawyer if you can secure a payment modification. A lot of the time you can lower payments by filing for Chapter 7 bankruptcy.

Don’t pay for an attorney consultation and ask him or her anything you want to know. Almost all lawyers will give a free consultation, so meet with more than one before making a decision on whom to hire. Only make your decision if all your questions and concerns are adequately addressed. You don’t have to make your decision right after this consultation. Take the time to meet with a number of attorneys.

TIP! Before you decide to file for Chapter 7 bankruptcy, consider how it could affect other people on your credit accounts, such as family members or business partners. Once you file for Chapter 7 bankruptcy protection, you no longer have legal responsibility for debts that you and any co-signers originally agreed to.

Filing for bankruptcy does not have to mean you are financially limited in the future. Saving your money goes a long way to show your lenders concrete proof that you are serious about reestablishing your credit. So begin saving your money and you will realize how much difference it makes when shopping for a home loan or car.