It can be very hard to live with a personal bankruptcy filing. When you notice you are in money troubles, you also notice that you might not have many financial options. Even with a bad credit score, it is still possible to overcome financial hurdles, as you will see if you keep reading.
Trying to exclude family members you owe money to before filing for personal bankruptcy can get you into serious hot water. The court will look into who you pay-off as far as a year back, and if they find you showing favor to family over other creditors, they could invalidate your filing completely.
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.
Don’t think of bankruptcy as the ruination of your financial future. Once your bankruptcy has been discharged, you can begin to work on re-building your credit right away. By continuing to make timely monthly payments and not applying for new credit, you can significantly raise your credit score within 6 months. And, if you maintain good credit for that amount of time, you may find it possible to get approval for loans to make large purchases, such as a home or car.
Avoid paying for a consultation with the bankruptcy attorney, but do ask many questions. Most attorneys offer free initial consultations, and you should take advantage of the chance to interview multiple practitioners. The lawyer who properly answers your questions is the one you should hire. Take your time choosing the right attorney to assist in your bankruptcy. Consulting with several attorneys will also help you find someone you trust.
If you have filed for Chapter 13 bankruptcy, but realize that you are unable to meet your payment obligations, you may be able to convert to a Chapter 7 bankruptcy instead. To qualify for the conversion, you must never have converted your bankruptcy before and also undergo a financial evaluation. The laws surrounding this process are always changing, so be sure to talk with an attorney who can help you navigate this process.
Include all financial information when filing for bankruptcy. Things that may not seem significant to you may be very important. Include all assets like: vehicles, every cent of income, retirement account, stocks and anything else that has value. Furthermore, include any lawsuits that are pending against you or other parties.
Remember that bankruptcy isn’t the end of the world. Just look at Donald Trump. He has filed multiple times! When saving money, you’re showing the lenders that you wish to rebuild your credibility. They’ll appreciate it. You will receive more favorable treatment when you apply for a loan if you start saving now.