The Truth About Bankruptcy

Many individuals are struggling with debt crisis and have thought about filing for bankruptcy

. Mostly people suffer for years in debt when they could have obtained relief sooner if they just took the time to find out what bankruptcy was really all about. Oftentimes, these people listen to advice given by well-meaning family and friends but in so doing, only make their situation worse instead of better. Because most of the time, the advice they get is based on misconceptions about bankruptcy. Depending on incorrect information can be devastating to your financial health.

Often, people think that the truth about bankruptcy is that, it is seems to be the absolute last resort. For people who are behind on credit card payments, bankruptcy has become increasingly resorted to. Bankruptcy is designed for people caught in serious financial circumstances beyond their control such as illness or loss of a job. While some debts will be eliminated, others such as alimony or child support will not be discharged. Bankruptcy is certainly not a means of starting over. Even after discharge, you will always be asked on loan or job applications if you have ever filed for bankruptcy. A common myth is that credit repair services will fix the damage from going bankrupt. This is simply not the case. Your bankruptcy will follow you forever.

The increasing rate of unemployment is a main bankruptcy culprit. But luckily, the book gives sufferers of income loss a number of solutions to get back on their feet. Bankruptcy risks can gain a fresh start without the need of declaring bankruptcy. A key technique in the book legally empowers people to stop creditor harassment. People can also learn how to settle unsecured personal and business debt with creditors, debt collectors, and attorneys for pennies on the dollar. Moreover, all of the valuable information is absolutely free. The anti-bankruptcy advocate also cautions people against the means test, a requirement of the Bankruptcy Abuse Prevention and Consumer Protection Act that makes it difficult to qualify to discharge all or most debts via Chapter 7 bankruptcy.

Many people afraid for filing bankruptcy because they think it will further damage their shaky credit history. The truth about bankruptcy is that once late payments begin to appear consistently on a person's credit report, their credit is already sufficiently damaged. As these late payments continue to resurface, that credit score continues to lower significantly. Two choices exist for individuals who meet this situation. The first option is credit consolidation, which groups creditors together and devises a plan to pay them off over time. It is important to note that the debt does not disappear, perhaps is compacted with the hopes of eventually satisfying each creditor in full. If payments are not made, credit score continues to worsen with each passing bill. The second option is bankruptcy, which dismisses a substantial portion of debt leaving only the debt that must eventually be paid, sometimes at a portion of its existing worth. Both options can damage credit, but only one offers a way out of paying for some, if not all, debt. There is no further black mark on your name or credit score. On the contrary, bankruptcy indicates, both to creditors and potential lenders that financial matters are being addressed and puts a plan into action. That individual, once viewed as a procrastinator, is now seen as a person who is pro actively seeking a means of regaining control. For more information about bankruptcy, visit http://www.onlinebkassist.com.

by: Steve

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