Are You Considering Bankruptcy?
Is your credit situation making you think about filing for bankruptcy? Filing bankruptcy is a "last-resort" option for individuals who are experiencing trouble paying their bills.
Often, those who file for bankruptcy has many negative marks on their credit report. They typically have been declined for credit recently, have lenders calling them and have bills which they pay late or not at all.
It is not unusual for a home or vehicle to have 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 will give rehabilitation to your business, and the choice of using future earnings to pay creditors. Once you start the bankruptcy proceedings, lenders 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 ruled that retirement accounts do not have to be included in your assets that are liquidated.
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.
Some things to remember:
1. Any derogatory credit item can potentially be removed from your credit report.
2. New, current good credit 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.
Often, those who file for bankruptcy has many negative marks on their credit report. They typically have been declined for credit recently, have lenders calling them and have bills which they pay late or not at all.
It is not unusual for a home or vehicle to have 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 will give rehabilitation to your business, and the choice of using future earnings to pay creditors. Once you start the bankruptcy proceedings, lenders 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 ruled that retirement accounts do not have to be included in your assets that are liquidated.
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.
Some things to remember:
1. Any derogatory credit item can potentially be removed from your credit report.
2. New, current good credit 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 a free credit repair e-book.
posted by Debt Consolidation Loan at
2:09 AM
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