subject: Bankruptcy Help: What To Do [print this page] Bankruptcy Help: What To Do Bankruptcy Help: What To Do
The only way bankruptcy can help you is if there is no other option for you and you use bankruptcy as a last resort since it ruins your credit for about seven years. New rules have also been put into place concerning bankruptcy, which make bankruptcy seem even more like a last resort. Not only does it still ruin your credit, but the process takes much longer now due to tests they make you go through, thus resulting in bankruptcy attorneys being more expensive as well.
Back in the day, just about anyone could file for bankruptcy, but according to the new rules made in the year 2005, you now have to qualify! If your household income is more than the median household income for a family the same size, you will not qualify, and you will be required to take a means test. A means test is a test that determines how much extra money you could have leftover after all reasonable expenses (expenses of their choosing) are subtracted. Depending on how much money you have leftover from this test will determine how much (if not all) of your debt will need to be paid off.
Even if you do qualify for bankruptcy and all of your debt is wiped away, you will still be required to attend counseling to help you better manage your finances. If you do not qualify for bankruptcy, you will be put on a payment plan, one that will enable you to pay off the decided portion of your debt. Also keep in mind that if you file for bankruptcy, you cannot file again for another 10 years. If bankruptcy is your last resort, however, and you think you may qualify, all of your debt can be gone, or at least a good portion of it.
