Frustration, sadness, anguish and anger are feelings that are felt by anyone who experiences personal bankruptcy. These feelings can make it hard to make it through the day, and can leave people feeling stuck. As you can see, filing for bankruptcy does not mean life is over.
Don’t look at bankruptcy as a first step. Look at all the other options you may have first. Consider any other options that are available to you, such as consumer credit counseling. Bankruptcy will be on your credit report and affect your credit score for many years to come, so it is a decision that should not be taken lightly. Try to use it as a last resort.
Rather than checking online, try to get recommendations from friends or family about a suitable bankruptcy attorney. There are various companies that prey on the financially desperate, so you need to find someone you can trust to ensure the process goes smoothly,
Prior to filing for bankruptcy, research which assets will remain exempt from creditors. The Bankruptcy Code includes a list of the types of assets that are exempt from the bankruptcy process. Make sure that you review this list before you decide to file, to see if you can hang on to your most important possessions. If you don’t heed that advice, you might find yourself getting surprised when your favorite things are repossessed.
Protect your house. Filing for bankruptcy will not always result in losing your home. If your home value has gone down, or if there’s a second mortgage, you might be able to keep it. You could also check out the homestead exemption. This lets you continue living in your house, depending on whether you meet certain financial requirements.
As this article has demonstrated, you do not have to go through bankruptcy. Many issues need to be handled the right way. By following the suggestions above, you can make sure that you have addressed all of the important items that you need to take care of during your bankruptcy.
