Jennifer Smith Posted on 9:26 pm

Is Bankruptcy The Light At The End Of Your Tunnel?

Filing for personal bankruptcy is an option that anyone with property repossessions should consider. Bankruptcy can wreak havoc on credit, but it may be the only way out of your situation. Read this article to learn more about filing bankruptcy and the consequences from doing so.

Before undertaking the bankruptcy process, ensure you have made the correct decision. Other available options include consumer credit counseling. Bankruptcy will leave a permanent scar on your credit report and before you take this huge step, you should search through every available option first, to help try and limit the damage to your credit.

When you document your financial records, it is vital that you are 100% truthful in order to have a successful resolution to your bankruptcy process. You can lose the right to file bankruptcy now or in the future if you try to withhold information about your assets and income. So it is critical that you disclose everything honestly to to avoid that and any other penalties the trustee might impose if he discovered your attempt to hide information from the court.

It is a good idea for you to hire a bankruptcy to handle your bankruptcy process. Bankruptcy is complicated, and having someone to help you navigate the process is crucial. A lawyer that specializes in bankruptcy can make sure you are following the correct procedures in your filing.

Check into less drastic solutions prior to declaring bankruptcy. For example, if you only have a little bit of debt, you might be better off if you went through consumer credit counseling. Some creditors will work with you to help you pay off your debt with lower interest rates, lower late fees, or an extended loan period.

Before filing bankruptcy consider every available avenue. Many times a consolidation loan will ease your financial struggles. Bankruptcy cases are long, anxiety-filled experiences. Your future credit will be affected by these actions. So, consider bankruptcy only as a last resort when you have no other choice.

Bankruptcy Filing

Do not file for bankruptcy if your income is greater than your bills. Remember that the record of your personal bankruptcy filing will be discernible on the report of your credit for as many as 10 years. For this reason, bankruptcy filing should not be taken lightly.

Speak with an attorney about any fears you have about losing your car. You may even be able to get your monthly payment reduced. Lower payments can sometimes be structured into a Chapter 7 solution. Your car must have been purchased more than 910 days prior to filing, be a high interest loan, and you must have had a steady work history for this to work.

It goes without saying that, bankruptcy is always available as an option. Nonetheless, you should remember the negative impact filing for bankruptcy will have on your credit rating. For this reason, filing for personal bankruptcy should be your last resort. Learn all that you can about bankruptcy before you file. That way, you will be prepared to make the best decision for a happy financial future.