Filing For Bankruptcy: What You Need To Know
If you want to make sure that you do not become bankrupt, then you are in the right place. Many people are struggling with these harsh economic times, and find themselves thinking about filing bankruptcy. Do not file bankruptcy, do what you can to secure your finances. Read the tips in this article to have a promising future.
Laws regarding bankruptcy vary by state, so you need to find a lawyer that can walk you through the entire process and help keep your rights protected. In several cases, you can keep your car and your home, but it’s your attorney that will tell you what rights you have, what you can keep, and what you will need to surrender.
A huge mistake people make before filing for bankruptcy is maxing out their credit cards. This can lead to disaster when you file and the credit card companies might not discharge the debt. If you can, you need to stop using your credit cards at least six months before you file, and ideally for a year prior. Also, do your best to pay the minimum payments on these cards for at least six months before you file.
Keep at it! If you file for bankruptcy at the right time it could enable you to get your property back that you lost to repossession. If your property has been repossessed less than 90 days prior to your bankruptcy filing, there is a good chance you can get it back. A qualified bankruptcy attorney can walk you through the petition process.
As tempting as it may be, do not run up credit cards right before filing for bankruptcy. Many times, people purchase expensive items, like jewelry, appliances and furniture right before they know they are going to file for bankruptcy. Most of the time, they are still going to be responsible for paying back this debt.
Know what debts can be forgiven. You may hear that you have to pay a certain debt, and that it cannot be discharged, but that information will usually be coming from a bill collector. Student loans and child support and a few other debts cannot be discharged, but most others can.
After your bankruptcy has been discharged, or finalized, a good way to begin re-building your credit is to obtain a pre-paid credit card. This type of card is usually available at your local bank. The card is secured by the amount of money you load onto it. You can not charge more than what you have loaded onto the card, so over-spending shouldn’t be a problem. It works like a regular credit card, with monthly statements and payments. After you have kept this card in good standing for a period of time, you may be able to have it switched into a regular, revolving credit card.
With all of the advice you gained today there should be no reason as to why you have to file for bankruptcy. You now have ideas about how to avoid and get around putting yourself in financial disaster. Use what you learned today. Plan out your future finances, in order to, avoid being put in this position again. For more information on click here: http://www.financebenefits.us