If you have been in debt before, you understand how it feels. Debt can feel like an elephant on your shoulders day in, and day out. Many people feel as if there is no hope when you feel you owe your soul to creditors and collectors. Bankruptcy seems to be the only choice at this point whether for your business or for you personally. Is Bankruptcy the choice you should take?That question is not so easily answered and there may be many things...more
It is a common belief that filing for bankruptcy is a way of eliminating all your debts. While in a miniscule number of cases, this is true, more often than not, you will have to pay back at least a part of that debt. Added to this bankruptcy can also completely destroy your credit rating for a period of 7 to 10 years. Working on getting a semblance of it back can be a big deal. A part of prudent financial planning would be to know that situations where you get the worst part of the bargain when it comes to filing for personal bankruptcy.Find out what are the earnings of an average individual in your state. If you make more than that, chances are you will have to file for bankruptcy under Chapter 13. This means that a repayment plan will be put in place for you. What happens here is that all your disposable income will have to be handed to a court appointed authority who will look into its dispersal. You will have to give up on several luxuries and the courts are quite strict about that. Missing even one payment can have you in contempt. You can end you paying the whole amount upfront as penalty. If you have a car and own a home along with some other equity and these are not...more
Before you consider filing for personal bankruptcy, there are alternatives that you could evaluate for yourself. The first would be a debt settlement. In this option you hire negotiators from a company to deal with your creditors and reach an amicable decision on lowering the debt owed. This is a good option for those who are unable to manage even...more
When you file for bankruptcy, you have certain exemptions. What this essentially means is that the legal system allows a certain amount of your assets to remain untouched, thereby giving you the ability to start over again without getting caught in the debt trap. When a bankruptcy exemption says "home exempted up to X dollars" it means that if your...more
For those you have a lot of financial debt sometimes the end never seems near. At times like these filing for personal bankruptcy seems to be the only option. While in some cases it does make sense as the only solution, you have to understand that it can have devastating effects on your credit history as well as your stand in society. There are several reasons why you may feel that bankruptcy is the only solution. But each of them need to be evaluated as a third person would. Perhaps then you would understand that it is better to give alternate options a chance. One of the most common takeaways from declaring bankruptcy is that it will help you start afresh. Remember that when you are filing under Chapter 7, all your non-exempt property will be handed over to the court to liquidate and pay of your creditors. Under Chapter 13, you will have a 3 to 5 year repayment plan in which all your disposable income will have to go. All this doesn't work towards a fresh start. Bankruptcy under Chapter 13 may be opted for to prevent a foreclosure on your car or home. What it effectively does is take that debt and put it into the repayment plan. Should you miss even one of these installments,...more
Wipe Out 50 % Of one's Credit card debt – How you can Reduce Credit card debt In 50 % And Prevent Bankruptcy By: meena jha About the Author www.uscaonline.com (ArticlesBase SC #2931313) Article Source:...more
Filing bankruptcy is a long process and usually is best handled by legal experts in the field. However, these too can be expensive and as a consumer, there are ways in which you can do it yourself. It will take a great deal of effort, patience and...more
Wipe Out 50 % Of one's Debt – Significantly Reduce Credit card debt Without having Filing Bankruptcy By: meena jha About the Author www.uscaonline.com (ArticlesBase SC #2931346) Article Source:...more
Make sure to speak with an experienced bankruptcy attorney in your area to learn how you can use the federal bankruptcy laws in your favor! A great bankruptcy lawyer will be able to get you the best protection that federal law offers including credit...more
The bottom line is that bankruptcy is not a wise solution for all debtors and it is followed by harmful consequences. The best debt solution is to put all your energy into a debt management program through a professional and licensed credit...more
Being in debt can be a stressful, confusing, and often scary situation. It can feel like you are in a deep hole and all you want to do is climb out but creditors are continually throwing dirt down to bury you. Sometimes, the best option to get out...more