If your valuable items are facing repossession, it can leave you feeling anxious or fearful. Filing for bankruptcy can help ease your financial burdens and put an end to harassing phone calls from debt collectors. Keep reading for tips that will help you navigate the process successfully.
Prior to filing for bankruptcy, be sure you have investigated all of your alternatives. You have other options available like consumer credit counselling services. Be sure to consider all options before filing for personal bankruptcy, as this will take a large toll on your credit score for the next ten years.
Try going to a personally recommended bankruptcy lawyer instead of using a phone book or the Internet. There are way too many people ready to take advantage of financially-strapped individuals, so you must ascertain that your attorney can be trusted.
Never pay for a consult with a bankruptcy lawyer, and ask plenty of questions. Free consultations are standard practice among bankruptcy lawyers, so interview multiple candidates before making a final decision. Do not make any final decisions until every question you have has been answered. After your consultation, take your time to make your decision. This will give you extra time to interview several attorneys.
Don’t isolate yourself from family and friends. Going through bankruptcy is difficult. This long and stressful process can leave a person feeling guilt ridden, unworthy and ashamed. It can be hard to face the world while the bankruptcy process is taking place. This is not a good idea because staying alone could cause serious problems with depression. Remember that it is not your families fault for your financial hardships and use this time to pull together and be strong.
The two main kinds of bankruptcy are Chapter 7 and Chapter 13. Make sure you understand them so you know what is best for you. All debt will be eliminated with Chapter 7. Your ties with all creditors will get dissolved. But, with Chapter 13, you will be in repayment plan for about 5 years prior to any debts you have being totally dissolved. Both options have advantages and drawbacks, so do your research before deciding.
Finding out about your personal bankruptcy options is the difference between a successful and an unsuccessful claim. The consequences for your credit make it a last resort in most cases. A person who becomes well informed in regard to personal bankruptcy will avoid a great deal of stress and will be better prepared to defend valuable belongings from seizure.
