Getting into debt is hard, especially when you find yourself caught up in an ever decreasing circle of threatening letters and debt collectors or bailiffs calling on you. It may be necessary for you to make yourself bankrupt and put a stop to the nightmare you are in. However, there is more to bankruptcy than you might think. Read on for some helpful tips:
- Make sure you choose the right attorney to help you – there are some that specialize in bankruptcy filings. See if you can get free consultations with several different ones, visit each one and see what they come up with. Make sure you have all your financial records and letters with you for each visit.
- Do not make the mistake of emptying out savings and retirement fund accounts before you go bankrupt. You will need some security later on down the line.
- Thinks about taking out a secured credit card or other form of credit line. This will help you to rebuild your credit after bankruptcy. Although these tend to have higher than normal rates of interest, a bankrupt person is going to find this wherever they go. Make sure you keep your new payments up and later on down the line you may be able to get much better deals.
- Do not run up any more debts before you file for bankruptcy.
Life after Bankruptcy
Once your bankruptcy filing has been successful it’s time to start rebuilding your life from the beginning again. Your debts have been wiped out and you need to start rebuilding your credit again. However, be very careful about who you apply to for loans and credit cards. There are companies that prey on bankrupts and charge extortionate rats of interest and high fees. Make sure you read the small print very carefully and seek advice if needs be, before signing on the dotted line. You could wind up in more trouble than you were in before you went bankrupt. Live with the salary you earn and build up your new credit slowly.
Once you have entered your bankruptcy filing, you can sit back and take it easy. Don’t get stressed out about the situation you are in and don’t let depression set in. Once your filing has gone through you will be much better off and you will feel better too.
If you really can’t live on your income look for a second job. If you can’t face the thought of going down the route of bankruptcy try to come to new agreements with your creditors, see if you can reduce your monthly payments. Most will accept some payment each month rather than nothing at all.
Do think about other options before you go ahead and file for bankruptcy. While it may seem like the best option at the time, be aware that it does have far reaching consequences and can affect your future for a long time. If you look for a debt consolidation option be aware that many of them are fake and you will wind up even deeper in debt.