Facing personal bankruptcy can be a very stressful situation for any person or family. It can be especially difficult because there are companies and people out there looking to take advantage of you in your time of crisis. This article will arm you with the knowledge that you’ll need to outsmart any scammers, and intelligently navigate your way through bankruptcy.
Make sure that you pay all of your bills on time, since this will contribute to 35 percent of what is on your credit report. This looks good if you are trying to rebuild your credit after you have had to file for bankruptcy. Making on-time payments will increase your credit score.
After your bankruptcy is finalized, you should begin re-building your credit by, obtaining copies of your credit reports. Your reports may show that you filed for bankruptcy, but it can take a lot of time for the credit bureaus to remove the original debt from your credit history. Check your reports over thoroughly, if there is debt showing that was discharged in a bankruptcy, you can contact the credit bureaus online, or in writing and request that the information be deleted.
If you are considering filing for bankruptcy you definitely need to hire an attorney. The topic of bankruptcy is a complicated one and it is important that you know all about it. Choose an attorney versed in personal bankruptcy to make sure you don’t make mistakes.
Be fully educated about the rules of bankruptcy. If the courts were to find that you have disregarded any of the rules in place, your petition could be dismissed. Laws prohibit picking and choosing some debts to pay off prior to filing for bankruptcy. Family members cannot be paid off within one year of filing and creditors are limited to ninety days.
Meet with many different attorneys before making any decision on one. To do this, you must start looking well in advance of when you need to file. If you wait until the last minute, you will not have the time to find an attorney that will give you good advice, and one that is easy to work with.
If you have a credit card with your local credit union, it may be one that does not have to be given up due to bankruptcy. Check with your credit union to find out if the line of credit will continue after the bankruptcy is final. You still must be sure to include it on your application with your other debts.
Know the rights that you have as you file for bankruptcy. There are unscrupulous debt collectors who may suggest that your obligations cannot be included in a bankruptcy. There are, indeed, some debts that cannot be bankrupted. Among them are student loans, child support and alimony payments. If a debt collector tells you this false information, seek the advice of your bankruptcy attorney. You may also want to report the bill collector to the attorney general’s office.
A great way to reestablish your credit after you have filed for bankruptcy is to get a low-balance credit card. This way, you can make small purchases and be able to pay it off each month, making you look more responsible and raising your credit score. But, just make sure that you can pay off the amount every month.
Do not cosign on any type of loan during or after your bankruptcy. Because you cannot file for bankruptcy again for many years, you will be on the hook for the debt if the person for whom you are cosigning is unable to meet his or her financial obligation. You must do whatever you can to keep your record clean.
See to it that you are aware of the laws concerning bankruptcy before you consider filing. Did you know that in some areas, you cannot transfer assets from yourself to another person in the year previous to filing occurring? In addition, it is unlawful for the filer to increase the amount of debt they are carrying on their credit cards right before they file.
Do not make the mistake of running up lots of new debt just prior to filing for bankruptcy. The court will take all of your spending into account, including recent debts you’ve incurred, and the judge may not be willing to waive debts if it appears that you are trying to game the system. Make sure that your spending habits reflect a true desire to change.
As you well know, filing for bankruptcy is a difficult and stressful decision. It is made even more difficult by all of the false information and scammers out there. However, with the tips and advice you’ve acquired here, you will get through your bankruptcy filing successfully and be on your way to a brighter financial future.
