If you are facing the repossession of valuables, such as cars or jewelry, you may be feeling some fear. If you want to put an end to the annoying calls, the threatening letters, and other intimidation tactics, filing bankruptcy may be your only out. To make your way through filing for bankruptcy smoothly, follow the tips presented in this article.
As filing bankruptcy becomes more of a reality, don’t use your entire savings or your retirement funds to pay creditors or attempt to resolve insolvency. Unless there is no other choice a retirement account should not be used. You may need to withdraw some funds from your savings account, but don’t take everything that is there as you will be bereft of any financial backup if you do.
Be aware that getting unsecured credit is going to be tough once you’ve gone through bankruptcy. If you are in this situation, applying for a secured card may be the answer. This will show people that you are serious about getting your credit record back in order. Once creditors see that you are making an effort to restore your credit, they may allow you to get an unsecured card in the future.
Do not despair, as it’s not the end of the world. Certain property cannot be repossessed while you are in the process of filing for bankruptcy so be sure to learn about the laws in your state. If the repossession occurred within 90 days from your filing date, it is possible that some of your property can be returned to you. Consult with a lawyer who is able to assist you in the filing of your petition.
Stay abreast of new laws that may affect your bankruptcy if you decide to file. Make sure to get the most up-to-date information concerning the bankruptcy laws in your state. To know what these changes are, go to your state’s website or contact the legislative offices.
Before filing for bankruptcy, determine whether Chapter 13 or Chapter 7 is appropriate for your financial situation. In Chapter 7 bankruptcy, your debts are all eliminated. Your former ties with creditors will cease to exist. Bankruptcy under the rules of Chapter 13, on the other hand, require you to work out a payment arrangement to pay back the agreed upon amounts. Take the time to learn more about these different options so you can make the best decision possible.
Bankruptcy is an option, but you should look at other options before filing. Also keep in mind that a lot of debt consolidation companies are scams that can make your debt worse. If you must file bankruptcy, learn from your mistakes and become a more conscientious consumer.