The Best Bankruptcy Advice
When one asks for bankruptcy advice, one's worst fears may have already happened- bankruptcy. It may not be the best place in the world to be in, but it will certainly not be the worst experience if you do manage to get the best bankruptcy advice; the kind of advice that should consider your emotional state, your financial situation, legal implications of the filing and current realities about bankruptcy in your state and in the nation.
Sensible bankruptcy advice should advice you that if you are emotionally distraught about what happened and would like to keep the whole thing discretely hidden until you ironed things out, have no fear because it will remain that way. There are exceptions of course if you are Angelina Jolie or AOL filing for Chapter 13. Even if it is a legal proceeding, chances are because of the modest scale of your filing, few people will know about it unless you tell them.
Sensible bankruptcy advice will never tell you that Chapter 7 will magically make all your debts disappear. Examine the conditions carefully or go through them with a lawyer who will tell you that child support payments, alimony and student loans cannot be exempted. Be wary of bad advice from misinformed friends who will tell you that you will simply lose everything you have. The law (which should vary from state to state) offers protection both ways to creditors and debtors. Exemptions can be made to important possessions such as your home, retirement plans, household items and even your car.
Good bankruptcy advice should also tell you that once you are back on your feet, you will be able to apply for new credit. But be careful though; those who will make the first offers to you would most likely be subprime lenders who might charge high interest rates. The thing is, while a credit card may certainly be useful for purchases, you would not like to be too dependent on them and run the risk of quickly accumulating credit debt. Also remember that if you manage to erase all your debts and have your current card show a zero credit balance by the time you file for bankruptcy, you would still be able to use that card and not give it up. Sensible bankruptcy advice should tell you that if you are married, bankruptcy does not apply to your spouse as well. However, if you and your spouse would like to discharge or reorganize some debts, then both of you can file as one. Good bankruptcy advice should also tell you that filing for bankruptcy is not difficult. The required forms depending on what chapter you would be filing under should be able to tell you everything you need to know, but it is recommended that if there is some complexity involved, it would be better to go through it with a lawyer. Sensible advice will also tell you that not only losers file for bankruptcy; try not to put this misinformed and negative bias as an added mental burden. Good bankruptcy advice will tell you that while you can exclude some creditors from your filing, it is always important to consider that someday when you get back on your feet, you may need their help, so do not make any exemptions.
|
