It's also a good idea to monitor your credit reports during your recovery period. Everyone should check his or her credit report each year. It's now Free and won't take much time as long as you stay on top of it. You can request one credit bureau at a time every 4 months and have a good idea of what's been entered in the past 12 months.
It doesn't matter which type of bankruptcy that you chose, you will have to provide all your personal information to your attorney. He will take this information and complete the necessary papers to file your claim in the court system. Once this is done, there will be several meetings between you, your attorney, your creditors and possibly their attorneys. The process will require patience and understanding on your part. Once the process and payments have been completed you will receive a discharge from your debt so that you can have a fresh start.
If you were in dire financial straits and want to get a payday loan or similar type of debt, you have to tell your lawyer about it right away. Your lawyer may be able to help you. However, you should avoid getting into this situation in the first place, because violating your agreement may automatically result in a dismissal of your bankruptcy.
One possibility is a debt management plan which would see some or all of the interest frozen and the monthly payments decreased in line with what they can afford. These are proving popular but of course the debt still remains and if there is no income to make regular payments then a debt management plan cannot work in the long term.
If you can manage to get a new credit card then you might want to think about using that as well. Pay the bills with the credit card on time, then pay your credit card payments on time. This is like a little double bonus as it shows multiple payments all on time and improving your credit.
Know what debts can be forgiven. You may hear that you have to pay a certain debt, and that it cannot be discharged, but that information will usually be coming from a bill collector. Student loans and child support and a few other debts cannot be discharged, but most others can.
It depends on courts to decide whether you have to go through financial hardship if you pay your student loan. This varies from person to person and from one situation to another. If the court finds that you have reached your maximum earning capacity, or you did not get any benefit from your education or went to a counterfeit school, or you have some mental illness which will continue to interfere in your work, or your health problem limits your future employment opportunities, all these would be treated as undue hardship. If the court finds that you can get a better and high-paying job but still prefer low-paying job, it may not be considered as financial hardship.