Liz Strauss

Before you file for bankruptcy, make sure you have considered all your options. Bankruptcy could be embarrassing and it could mean bad things to other people. If you decide to file bankruptcy, research the laws in your state and retain the services of a qualified attorney.
Prior to filing for bankruptcy, be sure you have investigated all of your alternatives. Look into credit counseling to see if it could help you work out of your debt without bankruptcy. Bankruptcy will leave a permanent scar on your credit report and before you take this huge step, you should search through every available option first, to help try and limit the damage to your credit.
When it soaks in that filing for personal bankruptcy, don't use all of your retirement funds, or all of your savings to resolve insolvency or pay creditors. Avoid ever touching retirement funds until you have no other choice. Your savings accounts offer valuable financial security so try to leave them intact.
After a bankruptcy, you may not be able to receive any credit cards. A great way to rebuild your credit is to apply for a prepaid credit card. If you pay what you owe back promptly at all times, you can show that you are taking steps to be responsible about your payments and credit rating. Eventually, you could be able to obtain unsecured credit.
If you aren't totally honest about your assets when filing a bankruptcy petition, you could get into serious trouble. Regardless of the agency you file with, ensure that you tell them all they should know about your current financial situation, regardless of how good or bad it is. Don't hold anything back and formulate a smart strategy to deal with the reality you are facing.
Check into less drastic solutions prior to declaring bankruptcy. If your debts are really not overwhelming, you may find the assistance you need by consulting a consumer credit counselor. You should also try negotiating a payment plan with your creditors; make sure you get a written agreement of the new payment plans.
There are two different kinds of personal bankruptcy you can file for: Chapter 7 and Chapter 13. Get a good grasp of the pluses and minuses each type of filing involves by researching both of them extensively. If you're really not sure how this all works after your research, meet with your lawyer and ask them prior to making a decision.
Be around family as much as possible. Bankruptcy proceedings can be extremely harsh. It takes a long time, it can be stressful, and people feel unworthy, guilty and ashamed. Lots of people decide they should hide from everyone else until it is all over. This is not a good idea because staying alone could cause serious problems with depression. It's imperative that you spend as much time with loved ones as you can, even in the midst of your financial dilemma.
There is no need to rush to file for bankruptcy. The tips here can help provide you with some guidance to avoid filing bankruptcy. Use the information you have learned here, and see how you can revamp your finances and protect your valuable credit history.