Stay up to date with any new bankruptcy filing laws. Laws are ever-evolving. You must stay current with bankruptcy laws if you want to be successful in your challenge. Check the website of your state’s legislation or get in contact with your local office to learn more about these important changes.
Document your questions and concerns prior to sitting down with a bankruptcy attorney. Remember, an attorney’s time is costly. You can save yourself a lot of aggravation and money if you come up with a list of concerns and have questions ready to ask before speaking with the attorney. Don’t leave the office until you are sure you understand everything. If you suspect that bankruptcy filing may be a reality, don’t try to discharge all your debt in advance by emptying your retirement or saving accounts. You should never touch your retirement accounts, unless you have absolutely no choice. If you do have to dig into your savings, make sure that you leave enough to sustain you and your family for a couple of months. Do not use your retirement fund or savings to pay off creditors. Avoid ever touching retirement funds until you have no other choice. Your savings accounts offer valuable financial security so try to leave them intact.
Be cautious if you are planning to pay off any of your debts before you file for bankruptcy. Bankruptcy laws prohibit some creditor payoffs within 90 days of filing. When it comes to family members, a year is the cutoff for payoffs. Know what the laws are prior to making any payments.
Once bankruptcy has been done, open new credit so you can rebuild your history. Using secured credit cards allows you to do this even if your current credit score is extremely poor. You will definitely be forced to pay a great deal in interest either way, but the end result is worth it. A secured card will help you re-establish good credit and make you eligible for credit in the future.
Consider all of your options before filing for bankruptcy. You may want to consider credit counseling. There are some good non-profit organizations that could help you. They can help you to lower both your debts and interest owed to creditors. You pay them and then they pay the creditors.
Be candid with your lawyer and include all of your financial information in your court filings. This obviously includes information on your credit card debts, medical bills, and other outstanding debts, but you should keep in mind that it also includes any loans that you have taken from relatives or friends.
Filing for bankruptcy is nothing to be embarrassed about. It is common for people to suffer from depression and feelings of failure if they end up needing to file for bankruptcy. If you have soberly thought about this topic and feel that is the best choice, look at it as a step toward success.
It’s important that you understand what bankruptcy is and how it will change your life before you attempt to file a claim. The United States There is solid advice available from the NACBA, (Consumer Bankruptcy Attorneys’ association) the ABI, (American Bankruptcy Institute) and the United States Department of Justice. The more knowledge you have, the more you are able to make right decisions and find a new future.