Is Bankruptcy Right For You? Read This Advice!

by Dori Tery on October 24, 2015

Just thinking of filing for bankruptcy is more than enough to strike substantial fear into anyone’s heart. A good number of families are having trouble containing their debt and not being able to support your family can be real frightening. If this applies to you, or you live this way, then the contents of this article are going to prove of good use to you.

Before you decide to declare bankruptcy, be sure you have considered alternative options. For instance, you may want to consider a credit counseling plan if you have small debts. You can also talk to creditors and ask them to lower payments, just be sure any debt modifications you agree to are written and that you have a copy.

Chapter 13 Bankruptcy

Be sure you know how Chapter 7 and Chapter 13 bankruptcy. Chapter 7 eliminates all outstanding debts. This type of bankruptcy ends any relationship with them will become no longer existent. Chapter 13 bankruptcy though will make you work out a five year repayment plan to eliminate all your debts.

Understand the differences between a Chapter 7 and Chapter 13 bankruptcy. Take the time to find out about each one online, and then figure out which one will be best for your particular situation. If the information you read is unclear to you, be sure to ask your attorney to explain anything that is unclear before you make your decision about filing.

Make sure that you are acting at the appropriate time. Timing can be critical when it comes to personal bankruptcy filings.For some people, filing right away is best, however for others, it is smart to hold off until a later time. Speak to a bankruptcy lawyer to discuss the ideal timing for your personal situation.

It is not uncommon for people to declare that they will never again use credit again. This isn’t wise because you need to rebuild a good credit file. If you do not rebuild your credit rating, you will not rebuild the type of credit you will need in making future purchases.

Once your bankruptcy is over, contact the three major credit reporting agencies and request copies of your report. Check that your credit report accurately reflect all your closed accounts and discharged debts.

Any debts you forget to list will not be discharged at your bankruptcy.

You do not want to delay your plans to file simply because you have changed jobs. Filing for bankruptcy may still might be the best thing to do. When you choose to file could really make a big difference. If your filing is done before you earn a new income, your repayment options will be considered without this new wage figure being taken into consideration.

Many people file bankruptcy right after getting divorced because of unforeseen financial difficulties. Reconsidering divorce can be a smart option.

Check each debt to find out if it will clear the bankruptcy and avoid unnecessary filing. Debts like student loans always remain on your credit report even if you file. You may want to consider consulting a loan consolidation or credit repair instead.

It is not unusual for people to be worried about bankruptcy; the process is nerve-wracking. Though the fear may be great, you can alleviate some of that with this article. Use the bankruptcy information in this article to make your financial life yours again.

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