Is your current credit circumstance making you consider filing for bankruptcy? Filing bankruptcy is a "last-resort" move for those who are experiencing difficulty 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 are experiencing debt problems such as these, then surely you are looking for relief. Not being able to pay your bills is stressful and truly exhausting.
If you are considering bankruptcy, it is absolutely critical that you discover the permanent ramifications of a bankruptcy.
Bankruptcy laws were created with you in mind. When you file bankruptcy, most or all of your debts will be erased.
This can occur after your assets are divided amongst your debtors. This is possible, through bankruptcy, even if your assets can't pay all your debt.
The simple version of this procedure is known as liquidation, or Chapter Seven (7) bankruptcy. Chapter 7 bankruptcy is the most common type of bankruptcy. A "trustee" or government employee 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.
Also, you will not be able to transfer any assets that are part of the estate (so, forget about hiding your savings account or gold coin collection with a trusted relative or friend!) Further, transferring ownership of assets prior to filing bankruptcy typically does not work, and many are invalidated.
Recently, the U.S. Supreme Court decided that retirement saving accounts do not have to be included in your liquidation.
Bankruptcy and your credit reports - regardless of which bankruptcy you choose, it will typically remain on your credit reports for 7 or 10 years. Filing for bankruptcy frees you from your existing creditors, but not from any future creditors.
If you do file bankruptcy, it will narrow your choices. High credit is possible to restore, but it will take some time and patience.
Things to remember:
1. Any derogatory credit 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 are experiencing debt problems such as these, then surely you are looking for relief. Not being able to pay your bills is stressful and truly exhausting.
If you are considering bankruptcy, it is absolutely critical that you discover the permanent ramifications of a bankruptcy.
Bankruptcy laws were created with you in mind. When you file bankruptcy, most or all of your debts will be erased.
This can occur after your assets are divided amongst your debtors. This is possible, through bankruptcy, even if your assets can't pay all your debt.
The simple version of this procedure is known as liquidation, or Chapter Seven (7) bankruptcy. Chapter 7 bankruptcy is the most common type of bankruptcy. A "trustee" or government employee 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.
Also, you will not be able to transfer any assets that are part of the estate (so, forget about hiding your savings account or gold coin collection with a trusted relative or friend!) Further, transferring ownership of assets prior to filing bankruptcy typically does not work, and many are invalidated.
Recently, the U.S. Supreme Court decided that retirement saving accounts do not have to be included in your liquidation.
Bankruptcy and your credit reports - regardless of which bankruptcy you choose, it will typically remain on your credit reports for 7 or 10 years. Filing for bankruptcy frees you from your existing creditors, but not from any future creditors.
If you do file bankruptcy, it will narrow your choices. High credit is possible to restore, but it will take some time and patience.
Things to remember:
1. Any derogatory credit 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 a free repair credit e-book.
