Points To Consider Before Applying For Bankruptcy
Numerous individuals consider bankruptcy as a simple way to offload out of control debts, and it's regularly the first method they reach for. It may well relieve the burden, however it's not straightforward and should to be the final choice.
Although legally it is relatively easy to apply for bankruptcy, as with any legal proceeding, it is far from painless.
You will have to validate your filing, highlighting all your financial records to a judge and exposing it to objections by the credit agencies. If you have a large debt, they are not likely to happily settle with a token gesture of repayment.
Even if your application is successful, there are many knock on effects that you'll want to understand prior to taking this step.
You will forfeit any credit cards that have outstanding balances, and others may choose to close your accounts. You'll also find it all but impossible to source a home loan or other large secured loans. Depending on your family situation, it's possible that you may even lose your home.
Not all debts are covered by a bankruptcy filing. You need to review details carefully as many credit and loans can be exempt from protection.
Even after you have completed the official time for bankruptcy, you could still find that your credit record is in bad shape and obtaining any form of credit in all the future may be extremely hard. Of course, this could be a blessing in disguise.
Since you won't have access to credit cards, this can actually be an advantage. Unfortunately, there are some people who simply should not have access to easy credit, until they can improve their financial management.
Beyond the impact on your ability to get credit, you may in fact be required to forfeit physical assets, for example valuable furniture, jewellery or your car.
Lastly, bankruptcy itself is not free. Courts have fees to pay and, if you use a lawyer, that too will add further costs.
On a positive note, you will seek relief from debt collection visits (provided they are told) and any foreclosure action can cease. By taking action sooner rather than later, you can start to build a new credit history that can be better than you had previously.
It can be a huge wakeup call to improve any bad money management habits. For some people, they need to go as low as possible before finding the necessary motivation to make the necessary changes. However, going for bankruptcy can be hard, so think through thoroughly and seek expert advice prior to taking the plunge.
Source: Free Articles from ArticlesFactory.com
Related Tags: bankruptcy, to, applying, for, points, consider, before
Luke Ashworth is the founder of Trapped.co.uk which offers debt management, help and advice via the website www.trapped.co.uk Your Article Search Directory : Find in Articles
Recent articles in this category:
- The Secrets to Getting Low Down Payment Car Insurance
Upon purchase of a new car, there is almost always a requirement to buy an auto insurance policy as - The Wisdom Behind Auto Insurance Comparison Quotes
No one in his right mind would not go for a good deal. In fact, everyone is out on their feet and ru - The Benefits of Auto Insurance Comparisons Florida
Insurance can be expensive. This is something everyone knows about especially in the sunny state of - Auto Insurance Florida: The No-Fault Policy
There are different kinds of car insurance offered by a wide range of providers today. Different sta - Finding the Cheapest Auto Insurance Companies
Everyone is asking and searching for the cheapest auto insurance companies available today. Consider - How do You Compare Private Health Insurance Cover in Australia?
Deciding what is the best and most affordable private health insurance cover can be easy if you take - How Payment Protection Insurance Was Mis-Sold
For over six years the issue of Payment Protection Insurance (PPI) and how it was mis-sold to custom - Finding Quotes For Auto Insurance Online
One of the many concerns when you are shopping for auto insurance is being able to get access to quo - How You Can Find the Best Auto Insurance Online
When it comes to renewing your car insurance you are going to quickly discover that there are a numb - Guidelines For Searching For Auto Insurance Online
The internet can be a great source of discounts and values related to auto insurance. However, many
Most viewed articles in this category:
- Trading Forex With Pivot Points
Forex Pivot Point Trading are used today by Forex Traders and are calculated on the previous days mo - Where To Search For Free Grants
Where do you look for free grants? The search must be thorough or it could be an exercise in futilit - The Connection Between High Blood Pressure and Salt
We are a society of Salt Addicts. It cannot be denied. When you look at the things we do and the pla - Tips For Avoiding HYIP Scams
Before knowing about HYIP Scams, refer to the functioning of HYIP or "High Yield Investment Programs - Getting Credit After Bankruptcy
Consumers do not have to live sans credit following a bankruptcy. By following certain steps consume - Tips For Choosing A Credit Card
Are you looking for that perfect credit card? If so, you may be confused about what exactly to look - Cheap Car Insurance For Teens Online
Many elements determine a car insurance policy. Car insurance companies look at the person's age, hi - What Exactly Is Free Grant Money?
You can apply for free grant money from various government agencies. But where exactly does this mon - Small Business Owners Marketing and Customer Service
Marketing can be time-consuming, but it doesn't have to be hugely expensive now, thanks to the Inter - Apply Online For A Credit Card - How To Choose A Card?
The best type of credit card for you will be dependant on how you intend to use the credit card. Are
