If you are in deep financial trouble, you may be desperately looking for bankruptcy advice. Our Buffalo lawyers have the experience to guide you through the legal process.
Bankruptcy Advice | The Dos and Don’ts of Bankruptcy
When considering filing for bankruptcy, people often wonder what they should or shouldn’t do. The first thing they should do is seek the advice of a legal professional because only a bankruptcy attorney can accurately evaluate your specific situation and tell you what actions you should and shouldn’t take. There are certain things, though, that you should definitely not do as you’re considering a bankruptcy.
Number one, do not transfer ownership of any property or give property away. Doing so can cause issues that have a serious impact in your bankruptcy. Another thing you should not do is repay your relatives or friends any money that you owe. That may seem a little counterintuitive, but it is another thing that can have a large impact on your bankruptcy.
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Bankruptcy Advice | Reaffirming Debt
Sometimes in the course of a bankruptcy, a secured creditor – such as your mortgage holder or the owner of your car loan – may ask that you sign a reaffirmation agreement. A reaffirmation agreement basically means that you continue to owe the debt after bankruptcy just as you did before bankruptcy. For such large items as cars and houses, you may have to enter into a reaffirmation agreement if you want to keep them.
Bankruptcy Advice | Reestablishing Credit After Bankruptcy
If you’re considering filing for bankruptcy, one of your main concerns is probably how long will it take to reestablish your credit. The good news is that it will not take very long. The bad news is that you will have to work for it. After a bankruptcy, you need to establish some sort of credit that will report your payments to the major credit bureaus. That can be accomplished by opening a secured credit card account where you deposit an amount of money into a bank and they give you a credit line in that amount – usually $300 to $500.
You may receive offers for unsecured credit cards again, perhaps with a lower limit – probably around $500 – and usually with a high interest rate. You can avoid paying that high interest, however, by paying the entire month’s balance in full. As long as you pay on time, those are good ways to rebuild your credit. Another good way is to have a car loan, as long as you pay on time. Doing that shows that you are creditworthy and, as a result, your credit score should see an increase.
For more bankruptcy advice, please call our experienced Buffalo bankruptcy lawyers today. We have half a century of experience that can help us represent you.