Are You Considering Bankruptcy?
Is your current credit situation making you consider filing for bankruptcy? Filing bankruptcy is a "last-resort" option for people who are experiencing extreme problems paying their bills.
Frequently, someone who files for bankruptcy has many bad credit marks on their credit report. They often have been rejected for credit recently, have creditors calling them and have multiple bills which they pay late or not at all.
It is common for there will be a home or vehicle which has been repossessed, or under the threat of repossession.
If you have debt problems such as these, then you must be looking for relief. Not being able to pay your bills is stressful and truly difficult position.
If you are considering bankruptcy, it is absolutely critical that you discover the permanent ramifications of a bankruptcy.
Bankruptcy laws were designed with you in mind. When you file bankruptcy, most or all of your debts will be resolved.
This resolution is achieved after your assets are divided amongst your creditors. This is possible, through bankruptcy, even if your assets don't pay your debts in full.
This procedure is known as liquidation, or Chapter Seven (7) bankruptcy. Chapter 7 bankruptcy is the most popular type of bankruptcy. A "trustee" or government worker handles all the administrative and supervisory duties of the bankruptcy proceedings.
Chapter 11, 12, or 13 Bankruptcy offer rehabilitation to your business, and the option of using future earnings to pay creditors. Once you initiate the bankruptcy proceedings, creditors can no longer attempt to collect your debts.
Additionally, you will not be able to transfer any assets that are part of the estate. Forget about hiding your savings account or gold coin collection with a trusted friend! Also, transferring ownership of assets prior to filing bankruptcy typically does not work.
Recently, the U.S. Supreme Court decided that retirement saving accounts do not have to be included in your liquidation.
Regardless of which bankruptcy you choose, it will likely be on your credit reports for 7 or 10 years. Filing for bankruptcy frees you from your existing lenders, but not from any future lenders.
If you do go through with a bankruptcy, it will narrow your credit options considerably. Good credit is not impossible to restore, but it will take some time and considerable patience.
Things to remember:
1. Any negative item can potentially be removed from your credit report.
2. New, current good credit lines will make your score improve.
3. Old, negative credit falling off your report will also boost your score over time.
4. You must monitor your credit reports regularly - and dispute questionable derogatory marks such as charge offs, collection items, and late payments.
Frequently, someone who files for bankruptcy has many bad credit marks on their credit report. They often have been rejected for credit recently, have creditors calling them and have multiple bills which they pay late or not at all.
It is common for there will be a home or vehicle which has been repossessed, or under the threat of repossession.
If you have debt problems such as these, then you must be looking for relief. Not being able to pay your bills is stressful and truly difficult position.
If you are considering bankruptcy, it is absolutely critical that you discover the permanent ramifications of a bankruptcy.
Bankruptcy laws were designed with you in mind. When you file bankruptcy, most or all of your debts will be resolved.
This resolution is achieved after your assets are divided amongst your creditors. This is possible, through bankruptcy, even if your assets don't pay your debts in full.
This procedure is known as liquidation, or Chapter Seven (7) bankruptcy. Chapter 7 bankruptcy is the most popular type of bankruptcy. A "trustee" or government worker handles all the administrative and supervisory duties of the bankruptcy proceedings.
Chapter 11, 12, or 13 Bankruptcy offer rehabilitation to your business, and the option of using future earnings to pay creditors. Once you initiate the bankruptcy proceedings, creditors can no longer attempt to collect your debts.
Additionally, you will not be able to transfer any assets that are part of the estate. Forget about hiding your savings account or gold coin collection with a trusted friend! Also, transferring ownership of assets prior to filing bankruptcy typically does not work.
Recently, the U.S. Supreme Court decided that retirement saving accounts do not have to be included in your liquidation.
Regardless of which bankruptcy you choose, it will likely be on your credit reports for 7 or 10 years. Filing for bankruptcy frees you from your existing lenders, but not from any future lenders.
If you do go through with a bankruptcy, it will narrow your credit options considerably. Good credit is not impossible to restore, but it will take some time and considerable patience.
Things to remember:
1. Any negative item can potentially be removed from your credit report.
2. New, current good credit lines will make your score improve.
3. Old, negative credit falling off your report will also boost your score over time.
4. You must monitor your credit reports regularly - and dispute questionable derogatory marks such as charge offs, collection items, and late payments.
About the Author:
For a free credit consultation call 1-866-246-7311. Of for more information if you are Considering Bankruptcy visit us. Or for info about how to remove bad credit from debt collectors such as LVNV.
posted by Credit Counseling at
9:23 AM
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