Navigating The World After Declaring Personal Bankruptcy

Filing personal bankruptcy is not like it used to be. It used to be reserved for low income families that just could not make payments on their lines of credit. These days, people of all income levels are filing for personal bankruptcy. Read through the advice that follows to learn if your situation requires you to take the big leap to file for bankruptcy.

After you have declared bankruptcy, you may have a hard time being approved for unsecured credit. If that’s the case, it is beneficial to apply for one or even two secured cards. This will prove that you want to improve your credit score. After some time passes they may be willing to offer you unsecured credit.

Learn the differences between Chapter 7 and Chapter 13 bankruptcies. Chapter 7 bankruptcy completely wipes out your debt. You will be removed from any contracts you have with your creditors. On the other hand, filing for bankruptcy under Chapter 13 means you will have 60 months to pay your debts back. To make the wisest choice, you will need to understand the consequences of each of these two options.

If you choose to file Chapter 13 bankruptcy, be sure that the amount of your monthly payments is within your reach. If you set a payment that is more than you can afford, you may face a court order of liquidation of all of your assets. You will lose everything by falling behind on payments.

It is important that you don’t let bankruptcy get you down in the dumps. Bankruptcy can be a challenging time in anyone’s life, but it is meant to give you a fresh start, enabling you to establish good credit and move toward a better future for you and your family. Remember, bankruptcy is your legal right, so don’t feel guilty or ashamed of taking advantage of it. If you do feel that you are suffering excess anxiety or depression over financial issues, counseling may help you to better deal with your emotions and concerns.

Being with the people who you love should be still be a top priority. Going through bankruptcy is difficult. It’s generally stressful, lengthy and can make people feel guilty, ashamed, and unworthy. Lots of people think they need to hide from everyone until this is all done. This is not recommended because you will only feel bad and this may cause you to feel depressed. It’s crucial to spend time with loved ones despite your present financial situation.

Be selective. You may have learned that you must continue to pay for auto and home loans, and to stop paying your credit card bills immediately. That money could be put to much better use somewhere else. Continuing payments on these accounts is wasted money. Apply it to the lines of credit that you plan to keep.

Hopefully, you have learned what you need to know about personal bankruptcy. The advice that has been gathered into this article is meant to help you make the right choices when the time comes to file or to help you decide if it is the right move for you to make. Use this as a guide to help decide.

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