Having to file for personal bankruptcy is never a positive experience. Bankruptcy is a touchy subject, and people often don’t want to mention it when someone asks about their finances. Don’t give into it and be sure to use this advice to figure out what you need to know to avoid bankruptcy.
Be honest when filing for bankruptcy, because hiding liabilities or assets can only cause trouble to you. When you file make sure whoever is handling the process is fully aware of each and every financial detail. Don’t hold back information and create a strategy so you can deal with what’s really happening.
Try to make certain you are making the right choice prior to filing your petition. There are plenty of other options open to you, like consumer credit counseling. Be certain that bankruptcy is the only option you have before pursuing this course because bankruptcy is always evident on your financial and credit history.
You might experience trouble with getting unsecured credit after filing for bankruptcy. Look into getting a secured credit card in order to get back on your feet with building credit. This demonstrates to creditors that you are making a good faith effort to repair your credit. When you have done well with secured cards for a while, you should be able to obtain an unsecured credit card.
Consider if Chapter 13 bankruptcy is an option. If your total debt is under $250,000 and you have consistent income, Chapter 13 will be available to you. Declaring bankruptcy can assist you in consolidating your debt so you can repay it more easily. That plan lasts approximately three to five years, and then you are discharged from unsecured debt. Remember that you must make every payment. Missing even one could cause the court to dismiss your case.
Even though there are rumors that the economy is improving, lots of people are jobless or under employed. If you are lacking a steady income, and are facing mounting bills, there are still steps you can take to help avoid bankruptcy. This article has likely given you some ideas on how you can protect yourself from having to file for bankruptcy. Hopefully better things await you in the near future.
