Filing bankruptcy may be better for your credit than letting several bills go into collections. Many creditors are willing to settle a debt for a percentage of what you owe, or negotiate a workable re-payment plan. This can be a big boost to your credit rating, and it can save you money. Some people are better served by handling debt by consolidating their loans over bankruptcy.

Bankruptcy is a difficult time that always leads to lots of stress. To have a reliable and trustworthy guide through the process, find a highly qualified attorney. Don’t skimp when hiring a good lawyer. The cheapest attorney may not be the best, but the most expensive may not be the best either. Ask people who have used a bankruptcy lawyer for referrals, look them up at your local Better Business Bureau, then schedule free consultations in order to interview them. You can attend court hearings if you want to see a prospective attorney in action.

If you plan to file for bankruptcy within the next year, don’t put your assets in another individual’s name. The courts will see this as an effort to hide your assets and you run the risk of having your bankruptcy dismissed. Certain assets are untouchable by creditors. If you have transferred assets recently for legitimate reasons, you will have to wait the required time period before filing for bankruptcy. Attempting to hide assets from the bankruptcy court can only backfire.

To rebuild your credit after filing for bankruptcy, try opening new credit lines. This could be challenging because of your damaged credit, but you can start with secured credit cards first. Using a secured card helps you from being counterproductive by not allowing you to overspend, while building your credit score back up. You’re more likely to get the loan you need if you have a line of credit that demonstrates a positive credit history.