Being faced with the decision to file for bankruptcy can put you under a lot of stress. If you are in financial trouble, it’s easy to feel trapped and a little scared about your future. Yet even if your credit score is not good there are things you can do to still get the things you want, such as a car or home loan, read on to find out how.
If you wish to file for bankruptcy in the near future, credit cards shouldn’t be used. You may be tempted to start buying a lot of things, but the courts may not really like this. Practice sound financial management to the greatest degree that you can. Now is the perfect time to work on developing excellent financial habits.
You can take steps to hang onto your house. Bankruptcy doesn’t always mean you’ll lose your home. You could keep your home; it depends on your home’s value or if a second mortgage is on your home. It can be worthwhile to understand the homestead exemption law to see if you qualify to keep living in your home under the financial threshold requirements.
You could see about filing for Chapter 13 personal bankruptcy. With a regular income and unsecured debt below $250,000, Chapter 13 is probably best for you. That kind of bankruptcy allows you to hold on to your personal things and real estate while repaying your debts with a plan to consolidate your debt. The length of the plan is generally up to five years, and when this is over, you will be free of unsecured debt. Remember that if you even miss one payment that’s due under this plan, the court could dismiss the whole case.
Most bankruptcy lawyers offer a free consultation, so meet with several before you decide on one. Ensure that you have a meeting with a real lawyer instead of an assistant, since they can provide the best advice. Searching for the best lawyer will help you located the comfort you need during this time.
Reconsider going through a divorce as it could put you into a rough financial situation. People who divorce often must file for bankruptcy right away, because they were unaware of the financial difficulties facing them. You should make every effort to attempt a fix.
When you file your bankruptcy petition, you must be completely honest with the information you provide. Your petition could be denied if the court finds out you lied or hid information from them. Always be sure to disclose all assets and income which is relevant to your case. Doing so helps you demonstrate good faith and facilitates an appropriate outcome.
Bankruptcy is not a financial death sentence. When saving money, you’re showing the lenders that you wish to rebuild your credibility. They’ll appreciate it. Build up your savings and see what kind of deal you can get when you apply for a car loan or a mortgage.