Essential Steps You Need to Follow while Dealing with Bankruptcy

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Guest blog by Robert Christopher

Bankruptcy
Photo Credit: inlandpolitics

According to the Federal Trade Commission (FTC), it has been reported that bankruptcy is considered to be the last option to solve problems related to credit. This situation happens when you cannot pay off the outstanding debts. Bankruptcy hurts your credit score to a great extent. If you file for Chapter 7 bankruptcy, it will stay on your credit report for 10 years. However, if you file for Chapter 13 bankruptcy, it will stay on your credit report for 7 years.

Dealing with bankruptcy – Essential steps to follow

Here are discussed the essential steps that you should follow while dealing with bankruptcy.

  • Get ready for emotional impact of bankruptcy – You should talk about your personal feelings with the qualified credit counselors. Pre-bankruptcy counseling is needed before you may decide to file for bankruptcy as per the Federal Trade Commission. Make use of the time to talk to your counselor about the feelings of embarrassment and humiliation.

  • Connect with bankruptcy support groups – You may enquire from your credit counselor to provide you the reference to connect with bankruptcy support groups in your area or online. Make sure you are present at the meetings or online discussions to engross yourself with the others who are also passing through the phase of bankruptcy. Ask from the group members how they are dealing with bankruptcy.

  • Learn from your past mistakes – You should take a positive approach by looking at bankruptcy as a suitable chance to start afresh. Enable the bankruptcy process to revitalize you as a responsible credit user. Make it a point to follow the bankruptcy rules including any instructions about accounting changes in your income or seeking new credit.

  • Take advice from the bankruptcy process – If you want to take advice from the bankruptcy process, you will have to keep in touch with the bankruptcy lawyer and the credit counselor. Think them to be your advocates as you work through the various matters during the process of bankruptcy. In case of a Chapter 13 bankruptcy, your car may be replaced so you can get back to work. Your bankruptcy lawyer can tell you about getting approval from the court to take on new credit and the credit counselor can sketch out the disputes that you may have to face while trying to get credit.

By following the above steps, you will be able to deal with the process of bankruptcy.                                                              

About the Author: Robert Christopher is the Community Mentor of a financial community dealing with bankruptcy. He is being associated with this field from a long period & have been contributing with his best ideas by writing some excellent bankruptcy contents.

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