Important Things You Should Know Before Filing Bankruptcy
Important Things You Should Know Before Filing Bankruptcy
Before ever considering bankruptcy, there are some things you have to consider. The first thing is that bankruptcy is something that has very dire consequences. The consequences are so dire that you may find it difficult to obtain credit for the next 10 years. If you do obtain credit, then there are certain circumstances that come with it. Bankruptcy is not an easy out. It is impossible for something to be that easy for the fact that the government is basically giving you permission to not pay your debts. And you know that that is something that doesn't make you pay in some way.
So what are some things you should know before considering bankruptcy? Well, here are five of those things that you need to know:
- When you file bankruptcy, you have to go into acredit counseling program. You have to complete that credit counseling program before you ever file bankruptcy. This is because you have to be deemed unable to pay your bills. The credit counselor has to say that there is no hope for you to pay your debt, so bankruptcy is your only option.
- When you file bankruptcy, it will remain on your credit report for 10 years. This means that you may have difficulty obtaining credit. Most individuals who have filed bankruptcy are told that they can't get new credit for two years. Some aren't even that lucky.
- Having a bankruptcy onyour credit report could keep you from getting a job. Many employers are now looking atcredit reports to see how an individual handles their finances. They like to see this especially if you are going to be handling money.
- If you do obtain credit after filing bankruptcy, you're looking at high fees andhigh interest rates. This can cost thousands more than if you had good credit. Many individuals try to wait until after their bankruptcy is removed from their credit report.
- After the bankruptcy is removed from the credit report, it may still be quite difficult to establish new credit. This is because your record is wiped clean and you have to start over.
So what is the best thing to do? Try talking to acredit counseling company and see what they can do for you.Credit counseling counselors can usually work out a deal with your creditors that involve reducing your payment and even stopping interest accumulation. This allows you to pay the debt off faster.