Filing for bankruptcy is a serious financial decision that must be carefully weighed. When you consider taking this step, there are numerous things that you need to think about.
Filing for bankruptcy doesn't mean that you can just forget about debts. Instead, you will have to make sure that you are handling the responsibilities that you have in the case. These can vary some based on the chapter you file, but you should make sure you understand what you need to do for your case.
The decision to file for bankruptcy often feels like one of the biggest decisions in your life. As you move through the process, you will soon find that the financial stability is freeing in a way. Whether you are living through a Chapter 13 that requires you to make payments to the trustee or had to deal with a Chapter 7 that liquidated your assets, you are probably looking forward to the day when you can start to rebuild your credit.
A Chapter 13 bankruptcy is one type that a consumer might file. Unlike the Chapter 7 filing, a Chapter 13 means that you are going to have to make repayments to the court for some of the debts. This form is often called the wage earners plan since you need to have an income so that you can make the payments.
Many people worry about being able to live once they file for bankruptcy protection. While it is true that this process will impact your ability to get credit for a while, it isn't the end of the world. In fact, it is often better to file for bankruptcy than it is to have a bunch of unpaid, charged-off accounts on your credit report.
Bankruptcy can accomplish many things that can get you on a more stable financial ground. If you are considering filing, you need to make sure that you are looking at all the ways it might impact your life. You might be surprised at how much relief you are able to enjoy by filing.
You have been missing mortgage payments for months, and you know the lender is going to foreclose on your home. That doesn't make it any easier when the official notices begin to arrive. You desperately look for any option to save your home or at least buy yourself some time to get your finances straightened out so that you can afford the house again.
One trip to the hospital can result in a stack of unpaid bills, especially since the doctors and the hospital may bill separately for their services. If you've got a credit card or two with enough room, should you clear the debt and pay the credit cards instead?
Many different situations can lead to serious financial difficulties that will require you to file for bankruptcy. You shouldn't feel ashamed that you have to file. Instead, realize that bankruptcy relief is a tool to help you get your finances back in order.
When you make the decision to file for bankruptcy, you might be ready to get it over and done with. This isn't likely going to happen unless you had the foresight to undergo credit counseling in the recent past and asked for a certificate of completion. This is because you are required to have credit counseling before you can file for bankruptcy.