Bankruptcy Questions - What You Should Know About Bankruptcy

Bankruptcy Questions - What You Should Know About Bankruptcy

Most people can admit they are in at least some form of debt. Dealing with debt is never easy, especially if you find you owe a significant amount of money and cannot figure out any way to pay it off yourself.

You may just owe too much and not have a large enough income to be able to afford to pay it back, or have waited too long and have debt collectors hounding you and damaging your credit as each day goes by. Fortunately there are effective and reliable debt relief methods you can use to get out of debt and start to get back on track financially.

In the worst case scenario, bankruptcy may be the only option. Even though there are more people than ever filing for bankruptcy, the word is still somewhat taboo, as no one wants to admit they allowed themselves to get in so much trouble financially and it can be quite embarrassing. There is a lot of stigma and confusion surrounding bankruptcy and whether you or someone you know is considering going through with bankruptcy and has important bankruptcy questions, there are simple answers you should know.

One of the most commonly asked bankruptcy questions is "will this affect my credit," and the answer is yes. There is no way to avoid having bankruptcy damage your credit rating and your credit report will be marked with a big bankruptcy stain which means you will likely not be able to get approved for credit of any kind, even a department store credit card, until five to six years later - once you have made most of your bankruptcy payments and have proven you can be responsible with paying back money owed. However, if you stop to consider how badly your credit is being damaged while your debts go unpaid, it is pretty easy to see that claiming bankruptcy is probably the better option in the long run.

Another of the most often asked bankruptcy questions is "will this cost money" and again, the answer is yes. Many people have a misconception that bankruptcy is a free process but this is actually not the case. In most situations, you go through a bankruptcy company and have to pay a monthly fee for a couple of years before you are actually considered as being debt-free.

Or you may be wondering another of the common bankruptcy questions, which is whether you are eligible to go through the bankruptcy process. Anyone is eligible to at least inquire and get more information, and hardly anyone is turned down. It is more a matter of deciding whether or not the debt you owe is great enough to even be worth going through bankruptcy for, or if you should instead go through with another debt relief method such as debt consolidation or credit counseling.

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