Any time someone has to file for personal bankruptcy, it usually means that things have got too bad to cope with. Bankruptcy isn’t always something to be ashamed of and, sometimes, it can be the best thing and the right way to go about starting again. Here are some of the things you need to think about:
- Don’t jump into personal bankruptcy without considering and exhausting every other option first. Speak to an attorney who specializes in bankruptcy to see if it is possible to renegotiate your interest rates or a new repayment with your creditors. If you are facing foreclosure, see about getting into a program that can re-modify the loan. Most lenders will be only t happy to help you because, for them, getting something each month is better than nothing at all and it saves them the cost of having to take you to Court to try and get their money back.
- Make sure you have a thorough understanding of bankruptcy and the effect it will have on you, before you take the final step. There is plenty of information online or you can ask for a free consultation with a bankruptcy expert.
- Before you file for personal bankruptcy stop using your credit cards and do not run up any more debt. While you might be tempted to go on one final shopping spree, it will be frowned on by the courts. Now is the time to start building up your skills in in financial management; start to work out where you can cut back and sort out a budget that you can keep to.
- Do not let the attorney you have hired walk all over you. While he may hold the knowledge, you need to keep control of exactly what is happening and be as involved as you possibly can. It’s your life and your future that is being planned out.
- Get it into your mind that bankruptcy isn’t always a bad thing; it can actually be good for your credit record. Missing payment on your debts is a bad thing and, although bankruptcy appears on your credit history, it is a chance for you to start again.
- Don’t forget to tell your attorney everything and remind him of certain things whenever you feel it necessary. They are only human and they do forget things at times.
- Think about what you stand to lose as well. If you have a car on HP and you want to keep it ask your attorney to speak with the loan company. It may be possible to restructure your loan so your payments are less. 3 things will go in your favor if you want to keep the car – the loan having a high interest rate, a steady job and proof that the car was purchased at least 910 days before filing.
Do think very carefully before you file for personal bankruptcy. Weigh up all the pros and cons and get as much information and advice as possible. If it is the best solution then make the most of it and use it a stepping stone to a new, debt free future.