Before we begin, let’s assume you and your family are drowning in debt, filing for bankruptcy is now one of the first thoughts that comes to mind. No doubt filing for bankruptcy may seem like a lifesaver, but it’s not without its downsides.
Ok, so read on to learn more about filing for bankruptcy and if it’s the right decision for you. And another point is that here are eight simple tips to help you avoid personal bankruptcy:
1. Never wait too long to apply for
. Ignoring a problem will not make it go away. Waiting for enforcement or garnishment only makes matters worse. The success of the procedure depends largely on the application deadline. As soon as you realize your financial difficulties, talk to a lawyer about it.
If you are insolvent, personal bankruptcy should be your last option. In fact, it will be years before bankruptcy is removed from your credit report, and the new rules will make it harder to avoid paying off your debt.In other words, even if you’ve filed for bankruptcy, you might still be able to pay some bills.
3. Do not hide income or assets
Honesty has perhaps never been more important than in personal bankruptcy. Concealing income or assets can lead to exclusion from the court. It may also mean that you will not be able to file for bankruptcy in the future.
4. Don’t put off bankruptcy indefinitely
Perhaps declaring up front is better than juggling the years. If you don’t know what to do, look for a nonprofit agency that helps consumers with bankruptcy.
These experts can advise you on the best time to apply and share information on what to expect. Many of these organizations also organize credit management courses or seminars.
5. Get a Prepaid Credit Card
Once you’ve been laid off or gone bankrupt, a good way to rebuild your credit is to get a prepaid credit card. This type of card is usually available from your local bank.
The card is protected with the deposited amount. You can’t top up more than you have on your card, so overspending shouldn’t be a problem.It works like a regular credit card, with statements and monthly payments.
After keeping this card in good shape for a while, you may be able to switch to a regular revolving credit card.
6. Learn about the bankruptcy process
You can learn more about the bankruptcy process by speaking to a bankruptcy attorney or by doing independent research online.
Regardless of which method you choose to better understand the bankruptcy process, it’s important to understand how bankruptcy affects you, your family, and your creditors.
7. Ask Friends and Family for Moral Support
They may not be able to lend you money, but you should be able to talk to them about your difficulties and be able to rely on them. Talking about money with loved ones can be difficult. You’ll likely find them a lot cheaper than you think.
8. Start planning your life after bankruptcy now.
This whole process can be very overwhelming and leave you feeling like you have very few options. You start rebuilding your financial future right away. Get solid advice from trusted sources, be willing to work hard, and most importantly, don’t be afraid to dream again!
9. Don’t Feel Guilty About Filing Bankruptcy
Don’t feel ashamed or guilty about filing for bankruptcy. Many people fear being treated as second-class citizens when they file for bankruptcy. However, this is not the case.
The government created a “bankruptcy” option to help people overwhelmed with debt and in need of a fresh start.
Last year on January 1st4 million people have filed for bankruptcy and most of them are now living happily and debt free. So there is no need to fear the stigma of failure.
Conclusion
Well, as you can see, there are many factors to consider before you decide to file for bankruptcy. Consider your particular financial situation and the different types of debt you have, as not all of them can be eliminated. However, remember that with a little research, you can determine if bankruptcy is the best option for you.That concludes this article which we hope will help you make the best decision possible.
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