How You Can File Personal Bankruptcy

Frustration, sadness, anguish and anger are feelings that are felt by anyone who experiences personal bankruptcy. Many people are fixated on the question as to how they will repay their debts so much that they are unable to live their daily lives. They think they are stuck, but they really aren't, and neither are you, thanks to the following tips.

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Once you have filed for bankruptcy, you will have to do your best to build your credit all over again. Do not be tempted to allow your credit account to have nothing on it, so it will appear to be fresh. This will send a bad signal to anyone who is looking at it.

 

Don't let bill collectors convince you that you are ineligible for bankruptcy. Debt collectors do not want you to file bankruptcy under any circumstances because it means that they will not get the money you owe them, so they will always tell you that you do not qualify when given the chance. The only way to truly know if you qualify is to do some research or speak with a bankruptcy attorney.

 

Don't hide assets or liabilities when filing for bankruptcy. It is important that you are completely transparent, showing everything financial that needs to be known. Do not hold anything in secret and create a strategy on how you will deal with the things you are facing.

 

Make sure that you pay all of your bills on time, since this will contribute to 35 percent of what is on your credit report. This looks good if you are trying to rebuild your credit after you have had to file for bankruptcy. Making on-time payments will increase your credit score.

 

A great tip for filers of personal bankruptcy is to thoroughly prepare for the initial meeting with the bankruptcy attorney. By assembling every piece of relevant financial documentation, including mortgage documents, auto finance agreements, credit card statements, tax records and bank statements, you can be certain that your bankruptcy petition and supporting documentation includes all information required for a comprehensive filing.

 

Consider filing Chapter 13 rather than Chapter 7, if you are facing foreclosure. A Chapter 13 bankruptcy allows you to create a restructured payment plan which includes your mortgage arrears. This will allow you to get your mortgage payments current, so that you won't lose your home. Chapter 13 doesn't require you to turn over property, so you don't have to worry about the homestead exemption, either.

 

You do not need to be bankrupt to file for personal bankruptcy. In 1898 the term was changed from "bankrupt" to "debtor" so that people could more readily understand that an inability to pay bills is the main qualifying factor in filing for personal bankruptcy. Most people who file are not, in fact, completely bankrupt.

 

After reading this article, hopefully you now know that bankruptcy does not have to mean doom and gloom. It may seem like a daunting task at first, but you can make it through your bankruptcy. Keep the advice here in mind so that you can work toward getting back on your feet!