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Bankruptcy And You – Important Things You Need To Know

Although bankruptcy causes stress, it can help financially. A lot of people will go over your finances and find out details about your personal life. The relief is that your phone will stop ringing with harassing phone calls from debt collectors, and you can begin to rebuild your credit. You can make the bankruptcy process easier on yourself by keeping the following tips in mind.

Most people end up filing for personal bankruptcy because they owe more than they make. When you are faced with this issue, begin to familiarize yourself with your state’s laws. Most states differ in their laws governing bankruptcy. For instance, your home might be protected in some states while you might lose it in others. It is best to become familiar with your state’s laws regarding bankruptcy before you take the steps to file.

When bankruptcy seem inevitable it is important not to use your retirement funds or emergency savings to pay creditors. Leave your retirement accounts untouched unless there is absolutely no other alternative. Using your savings is necessary, but decimating it and leaving yourself dangling with no future financial security is not a good idea.

When it comes to informing your attorney about your case, don’t be fearful. Many times a lawyer may forget a key detail; therefore, it is important to remind your lawyer of any key information. Speak up if something is troubling you, as this is your future we are talking about here.

Credit Cards

After a bankruptcy, you may not be able to receive any credit cards. If you are in this situation, applying for a secured card may be the answer. Using a secured card not only helps to rebuild your credit, but it also keeps you from going more in debt with credit card bills. After a certain time, you will then be able to acquire credit cards that are unsecured.

If you can, get a word-of-mouth referral for a lawyer. There are way too many people ready to take advantage of financially-strapped individuals, so you must ascertain that your attorney can be trusted.

Do some research to find out which assets you could lose by filing for personal bankruptcy. The Bankruptcy Code has lists of various asset types that are exempt during the process. It is crucial to read the list before you file for bankruptcy so you know whether your favorite items will be taken. If you fail to go over this list, you may be unpleasantly surprised sometime down the road if any of your most valued items are seized.

Don’t hide assets or liabilities when filing for bankruptcy. Wherever you file, that court has to be made aware of all details regarding your finances, positive and negative. You are in this situation, now help them to give you the best assistance possible to deal with it. You do that by giving full disclosure and holding nothing back.

Bankruptcy is a process that has both benefits and drawbacks. Never forget that being well-informed is always the key to a successful bankruptcy, no matter what your reasons for filing are. After reading the tips we present here, you will be able to manage your bankruptcy filing with ease. Utilize these tips and let them guide you towards a stress-free financial future.

Author

Carmen Evans