Although circumstances leading to bankruptcy may not be positive, life following bankruptcy can be. Maybe what you need is a fresh start. You can find this by filing a bankruptcy claim. Keep reading to handle the bankruptcy process in a way that is a rebirth and not a financial Armageddon.
Prior to filing for bankruptcy, be sure you have investigated all of your alternatives. There are other options available, such as credit counseling for consumers. Bankruptcy will be on your credit report and affect your credit score for many years to come, so it is a decision that should not be taken lightly. Try to use it as a last resort.
It should go without saying, but refrain from lying in your bankruptcy filings. Resisting the temptation to hide income or valuable assets from the bankruptcy trustee is a smart way to avoid potential complications, penalties, and the possibility of being barred from re-filing in the future.
You must be absolutely honest when filing for personal bankruptcy. If you try to hide any of your information, it will eventually surface and cause you problems. All of your financial information, be it positive or negative, must be disclosed to those in charge of filing your case. They need to know it all. Do not hold anything in secret and create a strategy on how you will deal with the things you are facing.
You may have heard bankruptcy referred to differently, either as Chapter 7 or Chapter 13. Learn the differences between the two before filing. Under Chapter 7 type bankruptcy, all debts are forgiven. Any ties that you have with creditors will be dissolved. Filing Chapter 13 differs by requiring you to agree to a 60 month plan to repay your debts before they are totally eliminated. Look into both types of bankruptcy before deciding which one would suit your particular needs.
Even though the economy is slightly getting better, so many people do not have jobs or are not getting paid enough. Even when your financial situation is not producing enough income, there are some things one can do in order to avoid bankruptcy. Hopefully, you are now aware of how to get yourself or your loved ones on the right track in order to avoid bankruptcy. Take this information and apply it to your personal financial situation.
