Bankruptcy: Is It For You?
Bankruptcy does offer a clean start. For those who are
struggling with debts and just can no longer make ends meet,
this seems like the right choice to make. But, before you head
down that road, you should make sure that it is the right
decision for you. There are many consequences to filing that you
should know about. And, with new laws in place to make it harder
to qualify for bankruptcy, you may also find yourself not
knowing if you qualify for it.
What Does Bankruptcy Do?
Bankruptcy can be filed two ways. First, it can be filed to
erase all of the credit claimed on the bankruptcy. It will wipe
the slate clean for these credit grantors meaning that you will
not owe them any more money. But, you may lose quite a few
assets by doing this as the credit grantors try to reclaim their
money. In the second type, Chapter 11, you file to reorganize
your standings and to give yourself the ability to pay off the
creditors in a way that fits your needs better.
Bankruptcy will stay on your credit report for ten years. During
that time, you will have a much harder time apply for and
getting credit. This is not only based on your ability to get
new credit cards but also your ability to purchase a home or a
vehicle as well. If you do find these options, they are likely
to cost you quite a bit of money.
Things To Think About
Before you file bankruptcy, make sure that you have taken the
time to insure that you have done all that you can to pay down
your debt. Make sure that you take the time to keep your home
and your car payments up to date as you may be able to keep
these if you continue to pay on them.
When you do decide to file, talk to a good attorney and find out
if you qualify. You'll want to find someone that you can trust
and that you know will do a good job for you. You should insure
that your fee schedule is set up before you sign any contracts
and agreements with them. Your initial consultation may be free.
Determine what you need to do to file, if you qualify and what
problems may be out there for you.
Bankruptcy does give you the ability to start over when it is
done right even though it is a long road ahead of you.