Navigating The World After Declaring Personal Bankruptcy
There are several common misconceptions, which are associated with personal bankruptcy, including that those who file a claim are irresponsible and poor. Realize that you will not be left with nothing, and that you can spring back from this situation. Read this article for some tips on how to deal with personal bankruptcy.
Don’t be afraid to apply for credit for purchases such as a new home or car just because you have a recently discharged bankruptcy. Many lenders will take your new financial situation into account. They may be more likely to loan money to someone who has no debt due to a bankruptcy than to the person with, say, 75,000 dollars in credit card debt. The fact that you have no monthly credit card payments can make you look like a better risk.
Getting unsecured credit post-bankruptcy will likely be difficult. If so, apply for a secured credit card. This will be a demonstration of the seriousness with which you view rebuilding your credit rating. If you pay your secured card off on time, you’ll eventually find that companies will start offering you unsecured credit.
Always weigh your options carefully prior to deciding to dive head first into filing a bankruptcy claim. Those with smaller debts may find use in a program for consumer credit counseling. It may also be possible to get lower payments, but if you do, be sure to obtain records for any consensual debt modifications.
A good personal bankruptcy tip is to be absolutely sure that you’ve gone through all of your options before you decide to file for bankruptcy. If the amount you owe is relatively small, you can always try to negotiate it by working through a credit counselor and making small payments.
Before filing for bankruptcy, learn your rights. Some debtors will try to tell you your debt with them can not be bankrupted. There are not many debts that can not be bankrupted, student loans and child support for example. If you are unsure about specific types of debt, check the bankruptcy laws in your state or consult an attorney.
Start getting used to paying for items with cash. Because bankruptcy will affect your ability to acquire credit for the foreseeable future, and credit you do obtain will have a high interest rate, pay for everything you can with cash or a check to prevent racking up new, much more expensive debt.
Do not wait until things go from bad to worse before filing bankruptcy. Some folks ignore financial difficulties for a long time, and this can be disastrous. It is very common for personal debts to snowball suddenly. When this happens, terrible consequences, such as wage garnishment and foreclosure result. When you find that you cannot take care of your debts anymore speak with an attorney for bankruptcy to talk things over.
Last year, those who filed for bankruptcy made $60,000 a year on average. Do not feel like you are completely irresponsible or poor just because you file a claim. Stay informed and speak with a lawyer throughout the entire process. Remember the tips in this article, so that you can come out of the situation, as unscathed as possible.