To File Of Not To File Bankruptcy
Before you lodge that petition, take a step back and ask yourself why you need to file bankruptcy. Do you really need it? Do you have this perception that it is the answer to all your financial woes? If you say yes, it is possible that you are one among the hundreds of thousands of people every year who file bankruptcy petitions, prompting experts to say that there could be a widespread belief that to file bankruptcy, would mean an automatic fresh start.
True only if you have chosen the right course of action and if you have done it properly. An out of work sales rep saddled with student loans and credit-card debt thought that to file bankruptcy under Chapter 7 would give him a new start. True enough, he was able to bounce back, find a new job and get married barely 5 months after that decision to file bankruptcy under Chapter 7. The consequences however of what turned out to be an ill-chosen, misinformed financial call cost him more than what he owed in the first place. Even with a high salary and an exemplary credit record before his filing for bankruptcy, he now cannot apply for new credit, get a loan for a house that he and his wife had been eyeing or even but insurance. In his haste to file bankruptcy without the necessary consultation if it was the right thing, a small notation on his credit rating cast a dark cloud that should stay with him for some time.
It is important to consider some things before you file bankruptcy because fresh starts owed to debts are never without its price.
Choose wisely between what the 2 consumer bankruptcy options can offer you. Consider the flexibility of Chapter 13 bankruptcy, which should allow you to arrange a payment schedule for any outstanding debt, and one that will be best for your current financial capability. But prepared that whatever option you choose, your credit report would still give a negative entry for at least 10 years. Filing under Chaper 7 does not make everything go away specifically credit-card debts and student loans than are not more than 7 years old. If you know that you are certain to file bankruptcy, make an effort to pay all outstanding credit card debts, or at least on a card that you intent to use afterwards. If you get to pay your credit card debts before the filing, simply inform the credit company about the resolution of your case. There are some companies who will cancel your card without notice when they learn about your case. Under Chapter 13, analyze the payments that you are supposed to make within a certain time period. Chapter 13 payments vary but do include fees for the filer's mortgage, car and other secured debt payments which could add up to something substantial, so make sure that you can meet the payments. Do not forget that you also should need to pay your lawyer as well: some legal firms require clients to pay a portion of their legal fees upfront in Chapter 13 cases.
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