A Closer Look at Personal Bankruptcy

A Closer Look at Personal Bankruptcy


There are many misconceptions about people who file for personal bankruptcy. Many times, those people are considered poor and irresponsible. This is typically not true. Filing bankruptcy does not leave you with nothing. Most people can come back strong after filing a personal bankruptcy. This article will help give you tips on how to best deal with filing a personal bankruptcy.

You will likely find it difficult to get unsecured credit you have claimed bankruptcy. If you find this to be the case, consider applying for a secured credit card. Any kind of credit card you have will help show creditors that you are trying to repair your credit and get your finances straightened out. After you make strides to repair your credit do well with a secured card, you will eventually be able to get a credit card that is unsecured.

As soon as your bankruptcy is final, you need to start the process of rebuilding your credit. To do this, you first need to get copies of your credit reports. These reports will likely show you filed for bankruptcy, but sometimes will also show the original debt. If any of the debts that were discharged in a bankruptcy are still showing, you will need to contact that credit bureau and request they delete that information.

If you are unable to meet your financial obligations under a Chapter 13 bankruptcy, you will likely need to change over to a Chapter 7 bankruptcy instead. To qualify for the chapter 7, you must undergo a financial evaluation and have never convert your bankruptcy in the past. There are many laws pertaining to this process, and these laws are constantly changing, so your best bet is to talk with an attorney to help you get through this process.

If you must file a bankruptcy claim, do not feel like you are poor or irresponsible. In fact, the average person filing for a bankruptcy makes around $60,000 a year. Talk to your lawyer and stay informed as you go through the process. Keep the tips in this article in mind as well to help you make it through this difficult process.