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Help With Bankruptcy
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What Is The Main Cause Of Your Financial Hardship?
Are You Thinking About Filing For Bankruptcy
After careful review of your bills, debts, and financial standing, you may have decided that bankruptcy is the most sensible option for you at this point.
However, you may still need help with bankruptcy when it comes to deciding which chapter of bankruptcy to file, and how to work out payment schedules with your creditors.
Here are some things you can do yourself to make the bankruptcy process as stress-free as possible.
You Can File For Bankruptcy Without Using A Professional Company
First, you may be surprised to know that you can file for bankruptcy completely on your own, without having to hire an attorney.
After all, you will have to pay the lawyer a fee for services, and if you're filing for bankruptcy, you are most likely looking for ways to save the money you have as much as possible.
Lawyer fees can be up to $1000 or more if an attorney files for you, so you may want to request the legal forms needed for the procedure, fill them out yourself, and send them to the appropriate government establishment in your city or state.
Knowing What Is Causing The Debt
In order to truly get help with bankruptcy, you have to know what is causing you to be in debt. It may be one situation that has become very costly, such as a surgery or unforeseen accident that required medical attention. Or, the decision for bankruptcy could come from months or years of using credit cards to their limit, and only paying the minimum balance.
The cause of your bankruptcy will help you to take an honest look at your spending habits, so that you won't have to file a second time. Even though filing more than once is allowed in most cases (especially if you file under a different chapter), it will reflect poorly on your credit, and could keep you from being approved for automobile or home loans in the future.
Organizing your finances, and exploring all possible ways to pay off your debt will also help with bankruptcy.
For instance, if you are filing Chapter 13, it means that you already have full-time employment, and can send payments to your creditors on a monthly or bi-monthly basis. If you own your own business, you may want to consider Chapter 11 bankruptcy, and if you own valuable property that you can sell in order to have the money to pay your debts, Chapter 7 bankruptcy may be for you.
If you decide to call a lawyer to get help with bankruptcy, make sure that you bring all your bills with you, and that you are willing to stick to a repayment plan that will change your financial future.
Disclaimer: before taking any action on filing for bankruptcy please seek your own legal advice, this hub is informational only and is not to be considered legal advice in anyway.
Advantages Of Filling For Bankruptcy
With people everywhere lining up to file for bankruptcy, you must be curious as to if there is any benefit at all to being bankrupt.
You must have heard by now all the disadvantages associated with filing bankruptcy, but then, did you know that there are advantages of doing so as well?
Maybe if you know what they are, you might want to consider filing for bankruptcy if you are finding it impossible to clear off your debt and holding back due to some reason.
So What Are The Advantages Of Filing For Bankruptcy
The biggest advantage of filing for a bankruptcy is that you get a stay as soon as you file for one. Hence, you are not obliged to pay any debt and in return, you can hold a creditor liable if he is demanding you to pay him off. This gives you the advantage to start some rebuilding efforts right away, and try to work off some debt while you can.
With a bankruptcy in tow, you can stop making most of your debt payments unless it is in the form of car loans wherein your creditor can have a lift on the stay order so that your car can be repossessed. Again, you can choose to pay off such critical debts to which the creditors will continue collecting and not resort to reclaiming your assets.
The next advantage is that you are given a fresh new start to set your financial record straight. Hence, you can probably get to work and maybe do something so that you can revive your wealth and try to build it up again from scratch without repeating the mistakes that you did in the past.
While you declare bankruptcy, many state laws allow you to retain some assets so that you can continue functioning normally. These depend on the state and vary based on the kind of bankruptcy you file. However, if someone has misled you into thinking that everything you own will be repossessed, then you may be under the wrong impression.
Finally, the other advantage with filing for bankruptcy is that it gives you job security. Hence, you cannot be fired if you are bankrupt and are protected under the law. However, this is only superficial protection and the employer can appeal on different grounds to remove you from the job based on a lack of quality work or something else which violates your employment contract. But, for the most part, you will retain your job and will not be removed from it easily.
Filing for bankruptcy may be the best option for you. Although there is a price tag attached to filing, for many people it is the only way to get them back to financial security and peace.
Talk with a professional today and discover if bankruptcy is the best option for you. There is a lot of stuff on the web that can assist you in getting in touch with the appropriate person. A little time and a little effort can go a long way.
Disadvantages Of Filing For Bankruptcy
There are many benefits to filing for bankruptcy. You may have found a quick and easy way out of your debts, but of course, it does come with strings attached.
If you are made aware of all the disadvantages associated with filing one, maybe you might want to take control and improve your financial situation.
Can Affect Your Credit History
Firstly, filing for bankruptcy is potentially disastrous for your credit history. Once you have filed for it, your credit history will reflect the bankruptcy for at least ten years. That could affect your financial status because fewer institutions will be willing to lend you money and even if they do, the rate of interest may be astronomical.
The poor credit history will also cause you to have problems when you are applying for credit cards.
Many banks and other financial institutions will refuse to give you credit cards because of the bankruptcy situation. The few institutions that will give you a credit card may do so against a large deposit or maybe at an interest rate nearly twice as that of what you were used to. However, chapter seven bankruptcies are slightly better because it means you are going to pay off debts over a period of time.
The Loss Of Friends
Next, you have to deal with the bigger disadvantage of filing for bankruptcy. The social stigma associated with this is something that is definitely worth thinking twice about. Many people go into severe depression after going public with their bankruptcy.
They have a hard time hanging out in the social circles they were used to because they cannot afford to do so anymore. They tend to get worried what others think about them. Hence, always make it a point to support the people around you who may be going through a bankruptcy. It is a very difficult phase and one that needs the support of friends and family.
You Will Continue To have Some Debt
The other aspect you need to be aware of is that filing bankruptcy doesn't mean that all your debt will be wiped out. You will continue to have to foot your alimony payments, other divorce settlement payments, education loans, back taxes less than 3 years due and even bad checks you gave to creditors on false pretenses.
Thus, do remember all of these factors the next time you plan on acting reckless with your money. You need to remember to be wise and spend money sensibly. Don't squander it irresponsibly and then worry about going into debt later on. Be responsible with what you have now and make a new beginning out of this unfortunate opportunity.
If you have to declare bankruptcy then make the best out of the situation. Keep a positive and open outlook on life. The best way to learn from our mistakes is to admit them and then change.
This is just a part of the process of life that will strengthen your will and character in the end. Don't allow this life event to stop you in your tacks but use it to overcome and see victory on the other side.