As you probably know, the economy is in the toilet. The difficult economic circumstances have caused increasing levels of unemployment and personal debt. Deep debts usually wind up in bankruptcy. This is not a pleasant situation. When you or a loved one is contemplating bankruptcy, it is important to read the following piece in order to understand available alternatives.
Getting unsecured credit post-bankruptcy will likely be difficult.
If this happens, instead you should turn your attention to secured credit cards. This will prove that you want to improve your credit score. After a while, you may be able to get unsecured credit again.
Be prepared to see your name in the news when you file for 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 records. As such, they are often reported in a section of local newspapers. The good part is that not everyone reads that part.
Honesty may never have been as important as it will be when going through personal bankruptcy.
Hiding income or assets may result in a dismissal from the court. It could also mean that you will be barred from ever having the opportunity to file for bankruptcy any time in the future.
If you are sure that you are going to file for bankruptcy, you should stop making any payments towards debts, that will be discharged during the bankruptcy process. Since you will not be liable for these debts in the near future, it is of little benefit to you to keep making payments towards them. It would be more beneficial for you to save any spare cash, that you have for future needs.
Start taking calls from bill collectors.
You may have been avoiding calls from bill collectors, but if you are filing bankruptcy you may need to speak to them. You need to have all of your debts laid out so that your lawyer can get to work involving them in your case. If you don’t include a debt, it will not be discharged, and you will still have to pay it.
Keep in mind that your credit is not necessarily ruined just because you have filed for bankruptcy.
But, it is important once you have filed for bankruptcy, that you properly manage your finances. This is the only way that you are going to be able to rebuild your credit the right way.
Be weary of creditors once you have filed for bankruptcy. These companies think because you have filed for bankruptcy, you cannot file it again for a long time. You are not risky to lend to. By accepting loans from these companies, you are putting yourself at risk for more financial turmoil.
Before filing for bankruptcy, keep in mind that child support will not be discharged in a bankruptcy case.
The reason for this is that child support is a responsibility that a parent must pay. Bankruptcy does not remove that responsibility. Be sure to include any child support in your list of debts that will remain with you after the bankruptcy is discharged.
While the economy may be improving somewhat, lots of people remain unemployed and in financial turmoil. Although bankruptcy can be avoided in some cases; there are other cases where bankruptcy is the only sensible option. Hopefully, you are now aware of how to get yourself or your loved ones on the right track in order to avoid bankruptcy. I wish you the best of luck.