I Cannot Find A Way To Pay Back All The Creditors, Should I File Bankruptcy?
Article by Steve Sanchez
I Cannot Find A Way To Pay Back All The Creditors, Should I File Bankruptcy? ? Finance ? Bankruptcy
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Ever since the US economy imploded and tailspin into the recession, many people have found themselves facing financial hardships. If everyone is a millionaire, then the financial market would not be talking about job creation and stimulating the economy every single minute of the day. Filing personal bankruptcy is an alternative to eliminate your outstanding debt and this should be consulted with a bankruptcy attorney carefully. If you can file bankruptcy to eliminate your debt, you should not feel mortified to do so, as it is your legal right to do so.
Seeking bankruptcy protection is not just for the big corporations such as Lehman Brothers or Bear Stearn in modern years. Personal bankruptcy is for individuals and you essentially have 2 options when it comes to personal bankruptcy. If you need to file bankruptcy, you will either file chapter 7 bankruptcy or chapter 13 bankruptcy. You should consult a bankruptcy lawyer before you decide if you should be filing chapter 7 bankruptcy or chapter 13 bankruptcy. Since the passage of the amended bankruptcy law in 2005, it has become more difficult for an individual to file bankruptcy than before. The new bankruptcy law that was adopted in 2005 was a way to stop people from abusing the bankruptcy law. Even with the new bankruptcy law, if you are facing serious financial difficulties, you should not have problem passing the various criteria in order to file for bankruptcy protection.
Filing bankruptcy is a relatively easy process, but there are many implications that you should become mindful of. Some of the issues that you will be facing post bankruptcy include:
You can maintain your assets even if you are filing bankruptcy
Even though the creditors have the right to reclaim your assets, there are definitely some assets that you own that are protected under the bankruptcy law. In fact, there is the legal term called ?exempt asset? which allows you to keep many of the valuable assets which the creditors cannot try to recover. Your bankruptcy lawyer should be able to provide you with all the direction you need to retain as many assets as possible.
Anticipate to have low credit score for extended period of time
Post bankruptcy process, you will see that your credit score will decrease significantly. Since the credit score range is from 300 (worst) to 850 (best), you should have the mental readiness that you will be in the 300+ range. Credit score can be repaired over time so you should not get too despaired over it. If you want to bring your credit score back to the mid 600s or even 700s, you just need to be careful about your financial health post bankruptcy. Here is a resource that can help you reestablish your credit score over time.
Your credit report will show the bankruptcy record for up to 10 years
As part of the ?baggage? for filing bankruptcy, your credit report will indicate such financial event for up to 10 years. Whenever you are applying for a job or a credit application, it unavoidably will ask if you have filed for bankruptcy before. It never ask if you have filed bankruptcy in the last 10 years. So in essence, even though the bankruptcy record disappears from the credit history, it will in no way completely disappear from your life.
Filing for bankruptcy is the easiest part of the entire bankruptcy process, but getting the right information and deciding to file is surely the most difficult decision you have to make. Do not be nonchalant about this crucial decision, make sure you have all the right facts. You should emphatically seek the advise of a bankruptcy lawyer to understand all the issues that you will be encountering.
About the Author
Steve Sanchez has recently overcome the economic depression of 2008-2009 by declaring bankruptcy. Even though bankruptcy has devastated Steve financially and emotionally, Steve has rebuilt his businesses in the last 6 months. One of his project is to educate people on bankruptcy. Please visit his site http://ToFileBankruptcyOrNot.com if you want additional information regarding filing bankruptcy.
Use and distribution of this article is subject to our Publisher Guidelines
whereby the original author?s information and copyright must be included.
Steve Sanchez
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Steve Sanchez has recently overcome the economic depression of 2008-2009 by declaring bankruptcy. Even though bankruptcy has devastated Steve financially and emotionally, Steve has rebuilt his businesses in the last 6 months. One of his project is to educate people on bankruptcy. Please visit his site http://ToFileBankruptcyOrNot.com if you want additional information regarding filing bankruptcy.
Use and distribution of this article is subject to our Publisher Guidelines
whereby the original author?s information and copyright must be included.
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