Many individuals who find themselves in a difficult financial situation with a large amount of debt, may be able to benefit and improve their situation, by filing for personal bankruptcy. This article is loaded with tips on filing for personal bankruptcy and will help you decide whether or not filing for bankruptcy is the right thing for you to do.
If you have to file bankruptcy, get a bankruptcy lawyer South Jordan to look over your paperwork before you file. Bankruptcy laws can be very complex, and if you do not have a lawyer, you can get yourself in trouble. Not only are there legal issues that you could face, but you could also end up losing property and cash that you think are protected.
Don't think of bankruptcy as the ruination of your financial future. Once your bankruptcy has been discharged, you can begin to work on re-building your credit right away. By continuing to make timely monthly payments and not applying for new credit, you can significantly raise your credit score within 6 months. And, if you maintain good credit for that amount of time, you may find it possible to get approval for loans to make large purchases, such as a home or car.
Be prepared to see your name in the news when you file bankruptcy. While the story isn't going to make front-page headlines unless you are a very prominent or famous figure, all bankruptcy cases are public record. As such, they are often reported in a section of local newspapers. The good part is that not everyone reads that part.
Make sure you have a solid understanding of which debts can be eliminated by bankruptcy, and which ones cannot. Debts like student loans, child support or alimony payments, and taxes, are generally not discharged through bankruptcy. Bankruptcy can help if your wages are being garnished or if you have large unsecured debts, like, credit cards and utility bills.
Be aware of recent changes, if any, in the bankruptcy code. Bankruptcy law has changed substantially in recent years, and therefore you must understand how such changes may affect your situation. To stay up-to-date on these laws, check out your state's government website.
You need to educate yourself on the differences between Chapter 7 and Chapter 13. Chapter 7 involves the elimination of all of your debt. Your responsibilities to your creditors will be satisfied. With a Chapter 13 bankruptcy, you will have to make payments for 5 years before the debts are forgiven. You need to determine which type of bankruptcy is right for you given your unique financial situation.
Filing for personal bankruptcy is a major life decision. Hopefully, armed with the knowledge you have learned from this article, you now know whether or not filing for bankruptcy is the right thing for you to do.