When It Is Advisable To Avail Bankruptcy Help

By Saurabh K Jain

Various bankruptcy laws in the bankruptcy code has provided various sorts of bankruptcy help for people trapped in too much debts to be paid-off with their available means and assets.
However, it is very important for you to try all the other bankruptcy alternatives before you finally decide to avail some sort of bankruptcy help. Always remember that bankruptcy is the last available option that you can use to get the much-desired debt relief and give your financial life a fresh start. This is because when bankruptcy is granted to a person, it brings many negative impacts for your future financial life. The bankruptcy will have adverse effect on your credit for the next ten years, at least.

You may also have to face great difficulty in order to secure your job after being declared bankrupt. Even your relationships and marriages may not remain untouched with the severe negative impact of bankruptcy. In several circumstances, bankruptcy has been found to be ended in many separations or even divorce. Therefore, the decision to avail bankruptcy help must not be taken lightly. It is a very serious step and you will have to make sure that you are filing bankruptcy only because there is no other bankruptcy alternative left to you.

How to Avoid Filing Bankruptcy

Following are some of the important steps that you can take in order to keep bankruptcy away from your financial life.

The first step is, not to cross your financial limits ever. You will have to learn to live within your means.

Be wise in using your credit card. Always remember that credit cards should not be used as a financial tool to borrow money. Because of the huge interest rates charged on credit card debts, it will prove you very expensive to you. Credit cards should only be used as a convenient mode to make payments.

If you do not want to avail bankruptcy help, you must have the ability to identify the intensity of your debt problems at a very early stage. If you will be proactive to your debt problems, you will never reach the stage of filing bankruptcy. Bankruptcy is a stage that hits your financial life, if you are reactive to your debt problems.

It is also important for you to identify your savings potentials and work on that.
If you have worked out everything and still are trapped in heavy burden of debts, you are advised to check out all the bankruptcy alternatives before applying for some kind of bankruptcy help.

There can be two ways in which you can avail bankruptcy help. One is wherein you seek bankruptcy help for filing bankruptcy and understanding of bankruptcy laws and their possible affects on your life. The other option for bankruptcy help is where you seek expert help and advice to find bankruptcy alternatives to avoid filing bankruptcy. For more information on all aspects related to bankruptcy, Visit Filing Bankruptcy

Advantages of Bankruptcy

By Debbie Dragon

Consumers who are considering filing bankruptcy are faced with a lot of questions and are often not sure what the advantages could be- if any. Besides the obvious advantage of not having the debt that hangs over their head everyday, are their any other advantages of potentially damaging your credit report for 7 to 10 years by filing bankruptcy?

There are many different aspects to consider before making a final decision. There are always options, but choosing the right option is not always easy. Below are some of the advantages that can help the consumer make thought-consuming decisions that are right for them. The advantages are not always the deciding factor but they can sure help you make a wise decision.

The Automatic Stay
One advantage is when the consumer files for Chapter 7 or Chapter 13 bankruptcy, a petition is filed and there is what is called an automatic stay, which requires the creditors by law to cease all activities of collecting the debt. This means that they have to stop calling, leaving messages, or mailing you notices when they are notified of your intentions. Creditors can be penalized by the court system if their efforts continue. This type of situation is best handled by an attorney. Bankruptcy Attorneys are available for a free consultation to answer any and all questions that you may have. They will help you see the advantages that can be offered by Chapter 7 and Chapter 13 bankruptcy. Each type of bankruptcy has it’s own set of advantages and disadvantages.

A Fresh Start
The advantage of obtaining a fresh financial start is another major benefit that a consumer should consider when deciding if filing a Chapter 7 is the best choice for them. Chapter 7 bankruptcy is a better option for debtors who have little or no property and mostly unsecured debts. You can choose what debts you wish to file Chapter 7 bankruptcy. This includes both secured and unsecured debts. Unsecured debts are those like medical bills and credit cards. A secured debt is when you have decided to use collateral that can include your home, car, or other major assets you have ownership of. Chapter 7 bankruptcy is also referred to as liquidation.

Possible Disadvantages
Chapter 7 is not a perfect solution, however, as there are some unsecured debts that do not qualify for Chapter 7 bankruptcy- including most school loans. Please ask questions of your bankruptcy lawyers. Consumers who are eligible for Chapter 7 bankruptcy may be discharged or forgiven from most unsecured debts. With a secured debt the creditor is entitled to collect the debt by seizing and selling certain assets of the debtor if payments are missed.

Chapter 13
Chapter 13 bankruptcy provides a better solution for those consumers who have a regular income, secured debts and do not which to loose their property. Chapter 13 bankruptcy allows the consumer to submit a plan, to the bankruptcy court to repay the debts that are secured in a three to five year period of time. This means the consumer does not have to lose ownership of the items used to secure the debt. Each individual’s situation is different though, and must be evaluated before deciding which type of bankruptcy is right for their particular situation.

Learning Opportunities
When a consumer decides to file for bankruptcy, whether it is Chapter 7 or Chapter 13, the consumer is required to take some classes. The consumer is required to attend classes pertaining to credit counseling and debtor education. This is an advantage that not only helps you figure what had went wrong, but it will also help you find new ways of budgeting, paying bills, and spending your funds so that you do not run into the same financial difficulty in the future. The classes also teach you how to protect yourself against identity theft and also how to read and monitor your credit report.

Employment After Bankruptcy
Consumers that are concerned about being dismissed from a job due to the fact that they are filing bankruptcy should not be worried. Another advantage is that employers are not allowed to dismiss an employee based upon the fact that they, the employee, are filing bankruptcy. Keep in mind, however, that it may affect your ability to obtain new employment for a few years after filing bankruptcy.

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