Should I File For Bankruptcy?
There are many companies advertising heavily about the benefits of filing for bankruptcy.
They'll be happy to tell you that all your debts will be wiped away and you won't have to pay back the mountains of debt that have been crippling you financially.
Does it really easy as it sounds? What those companies don't tell you is that declaring yourself bankrupt should be your last option.
If you've been considering it as a solution to your financial troubles, then perhaps look at all your available options first before jumping into anything drastic.
What Happens If I Declare Myself Bankrupt? A bankruptcy listing will remain on your credit report for at least 10 years and in some cases even longer.
Even once it's been removed from your credit report, you are still legally obliged to report your status on any credit applications you file after that time.
This listing on your credit report will negatively impact on your future ability to apply for loans, insurance and in some cases employers will refuse to hire people with blemished credit histories.
Any assets you may have accrued via secured loans will also need to be surrendered.
Your house, your car, any electronic equipment or any furnishings you may have bought using credit will now be automatically returned to your creditors to help recover debt.
Another point they may forget to tell you is that not all your financial obligations are wiped clean.
Bankruptcy will not clear any outstanding student loans or any outstanding child support payments you might have.
Things to Do Before You File for Bankruptcy The first step is to consider is tightening up your budget and calling all your creditors immediately.
By making payment arrangements with them you buy yourself a little time to work through your situation.
Your next step should be to consider ways to reduce your interest costs any way you can.
Consolidation into a lower interest rate personal loan might help to reduce your repayments a little and ease some of the pressure.
Another positive step you could think about is to use a credit counselor.
A good counselor will ask you to consider selling any expensive items to keep you solvent.
The idea is to use the proceeds to reduce your outstanding debts and help to put you back on the right track.
Consider a yard sale and clear out any old items you have around the place.
The profits won't be large, but every cent is going to be helpful if you're in a bad situation bad.
It is possible to also seek help using a good debt management company.
They can help to negotiate your debt with your creditors and work out adequate repayment options or even consolidate your outstanding debts into more manageable options.
In the end, the decision to file for bankruptcy is up to you.
There are plenty of options for seeking help with your situation, so consider these carefully before you make your final decision.
They'll be happy to tell you that all your debts will be wiped away and you won't have to pay back the mountains of debt that have been crippling you financially.
Does it really easy as it sounds? What those companies don't tell you is that declaring yourself bankrupt should be your last option.
If you've been considering it as a solution to your financial troubles, then perhaps look at all your available options first before jumping into anything drastic.
What Happens If I Declare Myself Bankrupt? A bankruptcy listing will remain on your credit report for at least 10 years and in some cases even longer.
Even once it's been removed from your credit report, you are still legally obliged to report your status on any credit applications you file after that time.
This listing on your credit report will negatively impact on your future ability to apply for loans, insurance and in some cases employers will refuse to hire people with blemished credit histories.
Any assets you may have accrued via secured loans will also need to be surrendered.
Your house, your car, any electronic equipment or any furnishings you may have bought using credit will now be automatically returned to your creditors to help recover debt.
Another point they may forget to tell you is that not all your financial obligations are wiped clean.
Bankruptcy will not clear any outstanding student loans or any outstanding child support payments you might have.
Things to Do Before You File for Bankruptcy The first step is to consider is tightening up your budget and calling all your creditors immediately.
By making payment arrangements with them you buy yourself a little time to work through your situation.
Your next step should be to consider ways to reduce your interest costs any way you can.
Consolidation into a lower interest rate personal loan might help to reduce your repayments a little and ease some of the pressure.
Another positive step you could think about is to use a credit counselor.
A good counselor will ask you to consider selling any expensive items to keep you solvent.
The idea is to use the proceeds to reduce your outstanding debts and help to put you back on the right track.
Consider a yard sale and clear out any old items you have around the place.
The profits won't be large, but every cent is going to be helpful if you're in a bad situation bad.
It is possible to also seek help using a good debt management company.
They can help to negotiate your debt with your creditors and work out adequate repayment options or even consolidate your outstanding debts into more manageable options.
In the end, the decision to file for bankruptcy is up to you.
There are plenty of options for seeking help with your situation, so consider these carefully before you make your final decision.
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