Before you file for bankruptcy, make sure you have considered all your options. Bankruptcy is often a dire sign in a person’s financial life, and can cause significant embarrassment and shame. Take heart, whether you choose to file bankruptcy or not, there are options available to help you get through your financial difficulties.
Get a plan in place for after your bankruptcy is over. Your debt will be forgiven, but you have to find a way to make sure that your financial picture will recover. Set definite goals so that you are always working toward a financial future that will never get you in this position again.
Keep your debts to a minimum prior to filing. If you are planning on filing for bankruptcy, don’t run up your debts. Your recent history will be checked by judges and creditors, and if it is deemed that you are trying to cheat the system, you may not be able to wipe out those debts. You will be viewed most favorably, if you can demonstrate that you have changed your spending habits.
Hire a lawyer specifically from bankruptcy attorney West Jordan Utah. Filing for bankruptcy does not require a lawyer, but a lawyer makes the process easier. It allows you some degree of relief to know, that a professional will be handling your case. Take your time, and choose a lawyer with a lot of experience in the field.
If you are planning to file for bankruptcy in the near future, don’t charge up your credit cards thinking that you won’t have to pay back the debt. In many states, there are rules about how much credit card debt and what kind, may be discharged in a bankruptcy. For instance, if you make purchases for luxury items, such as an expensive new TV, within 6 months prior to filing, you may be obligated to pay that amount back. On the other hand, if you used your credit card to purchase groceries, or other necessities, the rules may be different. Be sure to ask your attorney for advice.
Prior to filing for bankruptcy, discover which assets cannot be seized. The Bankruptcy Code lists assets considered exempt from being affected by bankruptcy. It is important to be aware of this list so you will know what assets are saved. If you don’t read it, you could have nasty surprises pop up later due to your prized possessions being seized.
If you are trying to rebuild credit after filing for bankruptcy, you should apply for secured credit cards. These can help you establish credit, but you have to make sure that they are one of the companies that report to the major credit bureaus, since all of them do not.
Personal bankruptcy should be a last resort if you’re in insolvency. This is due to the fact that it will take years for the bankruptcy to work off your credit report and new law changes make it harder to escape paying the debts off. In other words, you could have bankruptcy on your credit report and still be paying off several of your debts.
As you can tell, you do not have to let bankruptcy take control of you. The tips here can help provide you with some guidance to avoid filing bankruptcy. Apply the guidance you just received and see what it can do to improve your financial circumstances and bolster your credit record.