There are many people who are now in debt levels over their heads. Creditors and bill collectors hound them and there is no slow down in their bills. If this sounds like you and your situation, filing for bankruptcy may be a good idea for you. Go over the tips presented in this article to figure out if bankruptcy is the best solution.
Most people end up filing for personal bankruptcy because they owe more than they make. If this sounds like you, start familiarizing yourself with your state laws. Each state has its own laws regarding personal bankruptcy. Some states may protect you home, and some may not. Familiarize yourself with the bankruptcy laws of your state prior to filing.
When it appears likely that you will file a petition, do not start spending your last remaining funds on debt repayment. Retirement accounts should never be accessed unless all other options have been exhausted. You may need to tap your savings, but don’t empty your savings account, as this could leave you in a difficult situation down the road.
After you have declared bankruptcy, you may have a hard time being approved for unsecured credit. If this is so, apply for a secured card or two. Using a secured card not only helps to rebuild your credit, but it also keeps you from going more in debt with credit card bills. After using a secured card for a certain amount of time, you might be offered an unsecured card once again.
Instead of getting your lawyer from the yellow pages or on the Internet, try your hardest to find one with a personal recommendation. Don’t be taken in by some fly-by-night company that exists only to profit from the suffering of others. Check out any lawyer you are considering thoroughly before engaging him or her.
Research what assets are exempt from seizure before you decide to declare bankruptcy. The Bankruptcy Code lists assets considered exempt from being affected by bankruptcy. Be sure that you study this list. Make yourself aware of any assets you have that could be seized. This will ensure that you do not have any surprises once you have filed bankruptcy.
As you’ve read here, there are many places to find help if you are thinking about personal bankruptcy. You can have a brighter financial future by approaching the situation with a better understanding of the process and the right tools at your disposal.
