How to File Bankruptcy and Ways to Recover
For a professional, the word “bankruptcy” is enough to make one quiver. Legally, a person reaches bankruptcy when he or she is unable to repay debts, and in most countries, it is imposed by a court order and initialized by the debtor. In the United States, federal jurisdiction looks after such cases according to the United States Code.
A person completely collapsed financially can ask for a declaration of bankruptcy. Recovering from this condition seems impossible, and the person may think his or her life has come to an end. Most people make the mistake of considering bankruptcy as the problem, whereas it is actually the solution. A declaration of bankruptcy makes you free from all financial liabilities, and you are still left with the chance to start afresh. To file bankruptcy in Oklahoma or in any other city is quite stressful, but you should see a silver lining.
How to File Bankruptcy
- First, you should think about other options to pay off your debts. You can ask your creditors for a new loan settlement, to pay lower amounts or to increase the time limit. You may even try to make a short sale of your property to pay off debts, or you can contact debt management companies.
- Next, you should analyze. There are certain kinds of debts that cannot be discharged even after bankruptcy declaration. Before you file the case, you should evaluate and calculate how much of your debt can be dissolved. If a major part cannot be dissolved, then bankruptcy is not for you.
- Know that you have properties that are free from obligation. During the bankruptcy proceedings, there are certain properties that cannot be seized. Those assets cannot be exempted or can be protected under state laws. A few common protected properties are your home, wedding ring, car, etc.
- Finally, don’t forget a cosigner. Remember that your cosigner is not free from debts. If you legally announce yourself bankrupt, your cosigner will still have to pay off the debt.
How to Recover From Bankruptcy
- You should try to be a model customer. Do not overuse your credit card and buy things that are not necessary. Instead, stick to a budget and purchase only what you need.
- To build up your credit score after having to file bankruptcy in Oklahoma, you should pay all your bills on time. You can set an autopay system, or you can call creditors to make a new payment plan.
- If possible, you should contact a financial consultant. They will charge a little, but they can help advise you according to your income.
- If you feel depressed after declaring bankruptcy, take it as a new start to your life. Bad things happen, But this is not a death sentence. There are lenders who are ready to work with post-bankruptcy borrowers, because they know you cannot file another one for at least eight years.