Bankruptcy - The Good Vs the Bad - Is Bankruptcy a Good Decision For Me?When you are faced with a possible bankruptcy, you are faced with a terribly hard decision. Which can you handle better, the overwhelming stress of dealing with such debts or the fact of knowing you did not make it. How else can you possibly get out of this financial mess you find yourself in without ruining your good name or credit? Well, if your credit was that good, would you really be considering bankruptcy? How ever you personally answer that complex question, a bit of advice is to seek out a non profit credit counseling service for help. They are professionals trained to help make these decisions with you. You are not in it alone but must seek out the help. They will not come find you. It is true if you are looking to put your financial burdens behind you and receive a fresh start,then bankruptcy may be the right decision for you. However, the credit counselors that deal with creditors may be able to negotiate on your behalf and avoid the bankruptcy all together at least for the meantime. Depending on your age, you may still have ample time to start over and re-establish the valuable credit you presently lack. If you do proceed with the bankruptcy, collection, foreclosure and repossession actions currently against you will cease once you file the petition. If the bankruptcy is approved, your assets that were in foreclosure will now be included in the bankruptcy and you will be allowed to make monthly payments. Bankruptcy is a good option for you if you don't have many assets which will have to be surrendered. Most states allow you to keep your primary residence, your car and other essential assets to earn a living. If you are like many people, you may do all you can to avoid filing because it's difficult to deal with bankruptcy as it may make you feel like a failure. Your name will be in the court record and could may published in the newspaper. You can only file for bankruptcy once every six years, so you will not have bankruptcy as a potential "escape hatch." Your credit history will be ruined for up to the next 10 years which will make it difficult to get credit. This is to protect your potential creditors from being taken by having the excuse of filing bankruptcy to get out of your debts. The debts that you owe will be dealt with for the most part by the trustee. However there are some debts that no matter what you do will not be wiped away. The non-exempt assets you have will be sold to pay for as much as your debts as possible. Some of your home furnishings will be exempt but you could be forced to sell sentimental items. You credit cards will be deactivated and it will be increasingly difficult to be approved again for at least the next three years. Depending on your individual circumstances, bankruptcy could be a good way to get out from your debt, but there will be future consequences. Labels: Bankruptcy |
