Filed For Bankruptcy? Learn How To Adapt And Survive

Before we get into how to cope with bankruptcy, it’s important to realise that bankruptcy is not a solution to debt or money troubles.

It should always be seen as something of a last resort. If you think that filing for bankruptcy will solve all your problems, you’re in for a shock. This won’t happen.

What it will do is give you a second chance to set things right. This is a chance that you should take.

Before we get to that, we should examine when you should file for bankruptcy, if ever. People usually file for bankruptcy if they don’t have any income coming in. This might be due to a redundancy or a loss of wages.

They may also have a large number of big debts. If you’ve found yourself in this position, there are steps you can take before bankruptcy. You can apply for job seekers allowance. This might give you enough money while you search for new work. You can also consolidate your debts to make them easier to pay off in a smaller amount.

You should file for bankruptcy when the debts are impossible to pay off and for whatever reason, you have no source of income. It’s at this point and only at this point that bankruptcy becomes the best option.

But even then, you have to get your claim approved. This doesn’t always happen straight away.

The courts may not accept that you are at a point where bankruptcy is the only option. This is why you need to hire a lawyer. You might want to have a look at https://www.entrepreneur.com for some tips on choosing a lawyer.

 

Finding A Lawyer

Finding the right lawyer for the job can be tricky. Typically, due to to the fact that you don’t have the funds to pay for one. You may have to look for a cheaper attorney to handle your case, rather than someone who is high paid.

You can also think about looking for a private lawyer. Private lawyers tend to charge less money. You can have a look at an example of this type of practice on http://DJHernandez.com.

Once you find the right lawyer they will sit down with you and assess your options. They may also make you aware of what life will be like after you’ve filed this claim.

Many people make the mistake of thinking once they’ve filed for bankruptcy their debts are cancelled. This isn’t typically the case.

Generally, courts will order the claimant to use every financial asset they have to pay back what they owe. You’ll be forced to sell your home and your belongings. Once you’re finished, you’ll be starting from scratch.

 

After The Claim

empty pocket

Flickr Credit

Once your claim has been approved you’re going to be reliant on people you know. Family and friends will be important at this time providing you a place to stay and support.

You will have to search for a new job and you should be looking for any work that you can find. You’ll need to do everything you can to get back on your feet.

 

Remember, when you’ve filed for bankruptcy your credit rating is going to be at the floor.You’ll need to work on improving it before you can even think of buying a house or even a car.

The good news is that you will be completely debt free. It will just take a little while to get back to where you once were.

 

Reply