Have you filed for bankruptcy? Did you have no other choice and now you have to live with the consequences? Now you can get an idea of how to get through life with this article. You do have options in life, you just have to explore all of them. So take a look through this article to figure out some of your options.
Although filing for personal bankruptcy is one solution to debt problems, it is not the only solution.It is not necessarily the best solution. Before filing for bankruptcy, consider attempting to make payment agreements with your creditors. Credit counseling agencies will be able to help you work out such an agreement.
A good personal bankruptcy tip is know where you stand when you’re marrying someone who’s in a rough financial situation. A lot of times, spouses think they’ll be liable for the other’s debt, but this is only so when they’ve made a voluntary agreement to be responsible for the spouse’s debt.
When trying to decide if bankruptcy is right for you, make sure you first look into other options first. Contact the credit card companies and see if they will work with you. Liquidate your assets to pay your bills. Look into debt consolidation. Bankruptcy should be considered as a last resort, so make sure that you do not just jump into it.
Do not drain your 401K or retirement plan, in order to use the funds to pay off debt before filing for bankruptcy. Those funds are protected, so you should hold onto them. If you need to, use them to keep up with the payments for the secured lines of credit on the things you plan to keep.
Be completely up front and honest about your situation and assets to avoid courts from dismissing your case. If the court catches you deliberately hiding assets or income, it can bar you from filing and even refilling for bankruptcy on debts that you have listed within the petition. This makes it impossible to remove debts.
Have a credit report done before you file for bankruptcy. This will give you a list of debts that you have, and therefore give you a place to start when listing your debts for your bankruptcy filing. Make sure that there are no mistakes on it, and make sure to give it to your bankruptcy lawyer.
Talk to your children about what is going on. Bankruptcy can be extremely difficult for you and your spouse to go through, and children can usually sense when mom and dad do not feel right. You don’t have to go into detail, but give them an overview about what is happening. This way, you can teach them how to avoid bankruptcy, and how to cope with stressful news in a healthy way.
Speak with an attorney. If you’re filing for bankruptcy, spending more money is probably the last thing on your mind. Investing in a good attorney, however, can end up saving you a lot of money in the long run. Don’t take any unnecessary risks when it comes to your finances.
Understand your rights! Some debt collectors may claim that even after filing for bankruptcy your debt can’t be bankrupted. While few classifications of debt fall under this category, most do not. If your debt collector does this, and the debt you owe doesn’t fall under child support or student loans for example, report this to the state’s attorney general office.
Bankruptcy should not harm you for the rest of your life. Just because you have met harsh times, does not mean that there is no sign for hope. Now that you know how to live a better life while you get through your bankruptcy, you can focus on rebuilding your finances and your credit history.