When you're indebted to people or institutions, it's only a matter of time before they show up at your door to collect. Sometimes literally. Put a stop to harassment by creditors and blaze a trail to a new financial future by declaring bankruptcy. Find out what you need to know before filing bankruptcy.
One of the best ways to learn more about the bankruptcy process is to hit the Internet and look up reputable bankruptcy websites. You can learn a lot on the U.S. DoJ along with other private and nonprofit organizations all have insightful knowledge. The more information you have, the more confident you can be about any decision you make and you will know that you are doing the best thing possible for your situation.
Be certain you are making the right choice before you file for bankruptcy. Consider any other options that are available to you, such as consumer credit counseling. Your credit record will be harmed by a bankruptcy filing, and therefore prior to making such a decision, it is wise to investigate other options in order to minimize the damage you suffer.
Don't let bill collectors convince you that you are ineligible for bankruptcy. Debt collectors do not want you to file bankruptcy under any circumstances because it means that they will not get the money you owe them, so they will always tell you that you do not qualify when given the chance. The only way to truly know if you qualify is to do some research or speak with a bankruptcy attorney.
An important tip regarding personal bankruptcy is, gaining an understanding of what sorts of debts can, and cannot be included in a discharge. By realizing that some obligations are not considered dischargeable under the bankruptcy code, it is possible to make a wiser, more informed choice when it comes to making the decision to file a petition.
After your bankruptcy has been discharged, or finalized, a good way to begin re-building your credit is to obtain a pre-paid credit card. This type of card is usually available at your local bank. The card is secured by the amount of money you load onto it. You can not charge more than what you have loaded onto the card, so over-spending shouldn't be a problem. It works like a regular credit card, with monthly statements and payments. After you have kept this card in good standing for a period of time, you may be able to have it switched into a regular, revolving credit card.
Although personal bankruptcy is always an option, do not pursue this before looking into other avenues. Avoid debt consolidation services and credit counseling services that seem too good to be true. Keep these tips in mind so you can avoid debt in the future.
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