Debt As Opposed To Bankruptcy

For most people, making a personal bankruptcy filing is the only way that they can find their way out of a mountain of financial obligations. Filing bankruptcy is not something that you should be ashamed of, since the statistics indicate that the majority of people who file are doing so due to circumstances outside of their control, and not due to financial mismanagement.

You should gain an understanding of what options are available to you. For personal bankruptcy, you can either file Chapter 7 or Chapter 13, each of which is a slightly different approach. Each method works differently and the right method to use is based on your specific situation, and is dependant on a large variety of factors.

Most people believe that the process of filing personal bankruptcy is just filling out the right forms and submitting them to the right place. That statement may have been true at some point in the past, but it is certainly not true any longer. Bankruptcy is no longer a do-it-yourself process due to the recent major changes in bankruptcy law. Obtaining the services of a good bankruptcy attorney can more than pay for itself when you consider the amount of time you will save and perhaps even assets you can retain when you are being represented by someone very familiar with bankruptcy law.

You need to know what kind of debt you have that is causing you to consider personal bankruptcy because there are certain kinds of debt that cannot be discharged with any type or chapter of bankruptcy. Some of these would include federally funded personal loans usaloansnearme.com, alimony, and other type of debt, so if these types of debt make up a good percentage of your total indebtedness, bankruptcy is not going to help you.

Many people view bankruptcy as a drastic yet very simple method to wipe your slate clean and start over, but bankruptcy is far from simple or quick. From the date you start until your bankruptcy is completed can be a period of several months, regardless of which chapter you file. Also note that a federal bankruptcy judge needs to review your case and actually approve your bankruptcy, where there is a chance that you may not even be legally allowed to file.

One of the requirements with the new bankruptcy laws is that the person filing must attend some credit counseling and money management sessions. Yes, this is somewhat strange since the majority of people who file do not do so because of financial mismanagement, but it is still a requirement and something you must plan on doing as part of the entire process.

This is not something you want to enter into until you have considered all of your other options. The reason for this is because a bankruptcy filing will show up as a huge flag on your credit report for the next seven to ten years, and it will be more difficult for you to get credit cards, personal loans, a mortgage, and even employment with that huge blemish on your credit report.

In the world today, being in debt is almost a way of life. But in life, things happen that cannot be foreseen and sometimes bankruptcy is your best option. Ensure that you have investigated all possible alternatives before filing since there are frequently options that are better suited to your situation which do not involve the drastic step of bankruptcy.…

With consumer debt at an all time high, owing money can seem overwhelming. Many people have looked into the internet and have seen advertisements touting debt relief as a quick fix. Enticing as these ads may seem, it is important to be on the lookout for the validity of the claim.

A good deal of these promise a quick fix, but that quick fix might be bankruptcy. Yes, bankruptcy is one way to address your financial problems, but in most cases it should be a last resort. The fact that you filed for bankruptcy stays on your credit report for ten years which means that your chances of getting a place to live, credit or employment or insurance are significantly lowered.

It’s always a good idea to consider other options before deciding to file for bankruptcy. Talk with your creditors. Many times a re-payment plan can be worked out that is modified or can be paid in installments. Credit counseling services can work with you and your creditors to make debt repayment plans.

When you are thinking about a second mortgage, be cautious. These loans will require your home as collateral. Bankruptcy also has the capacity to stop foreclosures, debt collection activities and it may get rid of unsecured debts. Exemptions are provided that let you keep certain assets. However, personal bankruptcy does not usually take away child support, fines, taxes, alimony and in a few cases student loans.

It will not usually let you keep your property if your creditor has a security lien or mortgage that has not been paid yet. A somewhat recent tweak in bankruptcy laws creates certain hurdles that you must overcome before you can even file for bankruptcy, no matter what type of bankruptcy. First, you must get credit counseling from an organization approved by the government within six months before filling. Additionally, in certain cases you have to pass a test that requires that you confirm that your income doesn’t exceed a certain amount.…