Should I File Bankruptcy? – The Question No One Wants To Ask By Richard Wilson
Debts are piling up and the creditors are queuing at the doorstep – should I file bankruptcy? When you find yourself backed into a corner of debt and you can’t foresee a way out, then filing for bankruptcy could be the right solution for you.
The stigma of filing for bankruptcy isn’t what it once was. Although it sounds like the end of the world, you can rest assured that you’re not the only person feeling the pinch. Many highly successful entrepreneurs have been bankrupts at some point in their careers and tens of thousands of people file for bankruptcy each year.
Declaring bankruptcy can relieve the enormous weight you have on your shoulders and stop the dreaded calls from the debt collectors, allowing you a fresh financial start; however it does come at a cost. Before you ask yourself should I file for bankruptcy? Take the following into account:
Length of bankruptcy – The length of time you will be classed as a bankrupt for will vary from state to state and country to country, depending on local laws. The standard range is anywhere from one to three years and in certain circumstances, your bankruptcy may be extended even further.
Bankruptcy wipes most debts, not all – While it’s true that most of your debts will be discharged, filing for bankruptcy is not a get out of jail free card. You must still pay taxes and any child or family support payments that you are liable for. Likewise if you still owe for student loans or criminal fines and penalties; these debts and payments cannot be discharged. While you will gain the luxury of not having to make regular repayments, you will lose the right to your non-exempt assets. These will be placed in the hands of a trustee, who will in turn dispose of them in order to pay your creditors.
Loss of Company – Under most circumstances you will be banned from running a company, or being involved with its management without the permission of a court.
Personal Impacts - As a declared bankrupt you may be required to forfeit your passport to a trustee and in many cases you will not be able to leave the country without written permission. Routine tasks such as obtaining insurance may become difficult. You may be required to pay a bond for the connection of electricity, water and telephone utilities. Future job opportunities may be affected.
Furthermore, filing for bankruptcy is the worst thing you can do for your credit rating. The good news is it doesn’t last forever. Once you have been discharged, through sensible money management you can regain a good credit rating relatively fast. This may well be part of the reason why so many people are choosing to file now in search of getting a clean financial slate. So if you’re in a situation where you need to ask – should I file for bankruptcy? Take the preceding information into account, but remember, it’s not the end of the world.
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Should I File for Bankruptcy, and what are the Appropriate Steps to Take?
Should I File for Bankruptcy, and what do I do next? This is a question many Americans are afraid (and in denial) to ask. Bankruptcy is indeed a hard pill to swallow. However, if your financial situation has really been affected by the recession and you’re on the verge of losing everything, now’s the perfect time to ask yourself the question honestly, then educate yourself about surviving bankruptcy.
So, should I file for Bankruptcy,? According to the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA), prior to filing for bankruptcy, one must obtain consumer credit counselling within 180 days of the date of the bankruptcy filing. Credit counselling should be from an entity approved by the U.S. Trustee. This is important to educate yourself with other alternatives than filing a bankruptcy case.
After answering the oh-so-important question: should I file for bankruptcy, one should know about the important steps to take next. First of all, make damn sure that you have no other alternative. Bankruptcy will appear in your credit history file for up to 10 years. However, if your financial situation is in real bad shape, bankruptcy will allow you for a fresh start.
There are actually two common types of bankruptcy. The most popular is the straight or liquidation bankruptcy. Another is the Repayment Plan. Liquidation Bankruptcy is much more difficult to obtain because of the means test, thus, many people are forced to file the latter type of bankruptcy plan.
Another important question is ‘Should I hire a lawyer?’ Some choose to file without the help of a lawyer, although it’s highly recommended to get a lawyer. Of course, you should know how much it costs. Some lawyers give a flat rate, while others base it on the amount of debt you have. Others let you pay in instalments, while others require you to pay up front. Average lawyer rate is around $1,700, but may vary depending on the state you are living in. Meet with the lawyer so the two of you could go over your case, so he can determine which bankruptcy is best for you, based on your financial state. There are some states that allow you to file for free if you don’t have the financial means.
Refer all your creditors to your lawyer, so they will be able to speak on your behalf (Which means, equals no more annoying calls at your home and office! Hooray!). Once a lawyer has filed your case, absolutely no creditors should contact you regarding your debt. If they go against this, a wilful violation will be assessed against the creditor, including attorney’s fee, appropriate cases and punitive damages.
Now that you are equipped with all the right information, you can now ask ‘Should I file for bankruptcy,?’ with no hint of fear or uncertainty.
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Should I File Bankruptcy
LOW COST BANKRUPTCY FILING
SHOULD I FILE BANKRUPTCY? is a thought that is haunting a massive number of people these days – not just in the USA – but throughout the World! I had to file bankruptcy myself and was charged nearly $800 by my accountant just for him to “look into” whether or not I should go ahead and file!! That fee did not include any charges to do the actual filing itself!! This website is dedicated to helping you find LOW COST ways to get the information you need to answer your question.
Almost all of the bankruptcy articles available on the web elsewhere appear to have been written by bankruptcy companies, attorneys and accountants who then spend their time trying to convince people in serious financial trouble to hire them at some very expensive hourly rate to “help”! AS IF YOU CAN AFFORD THEIR FEES!! SOME HELP!
The best low cost risk-free way to get to know what your filing options are is to purchase a really good up to the minute ebook. I highly recommend two – the first one available from this first link sells for only $24.95 – and the second one, available from this second link is a very comprehensive 180 page e-book packed with relevant information that sells for less than fifty dollars! They are both well researched and packed with information that will help you really save money and a lot of time to answer your question – Should I file bankruptcy? And don’t forget that they both have a money-back guarantee – try getting that promise from an accountant or attorney!
Basically, once you have decided that filing for bankruptcy is the best option for you, what you need to find out is whether you qualify to file for a “Chapter 7 Bankruptcy” – which is a complete discharge of debts, or a “Chapter 13 Bankruptcy” – in which you are required to repay a portion of your debts on a fixed payment plan. There are many differences between these two sorts of bankruptcy and it would be wise to read up on both before deciding which chapter is your best option and what sort of help you may really need from a bankruptcy specialist should this be absolutely necessary.
Whatever you do, don’t let the thought of being bankrupt cause you undue stress – when so many of the USA’s largest banks and companies like General Motors have gone bankrupt it just shows how impossible it can be to keep your finances in good order. Remember that bankruptcy can give you a “fresh start” in life and it is a fact that many people have turned their lives around after having filed bankruptcy!
I honestly sympathize with your problem – having been there myself and I truly hope that the information contained in this article and in this blog will help you to make an informed decision that will be right for you.
T.Trust
Should I file bankruptcy?Should I pay off my medical debt or file bankruptcy?
I do not have any credit cards but have about 12k worth of medical debt, most of which is in collections – I did not have insurance and was not eligible for assistance. Now a new friend has offered to help me either file bankruptcy or pay off my medical debt if I negotiate with them to lower it. What should I do? I thought if I filed bankruptcy I would be able to recover faster. Any suggestions would be helpful. Thanks.
Bankruptcy may be the immediate solution but that can prove unsafe in the long run. As bankruptcy stays on your credit report for 10 years so till then after that you would face difficulty in getting loan, purchasing or leasing anything as your credit score gets down due to filed for bankruptcy results in a 160-220 point deduction on their credit score and if a delinquent account is added to the individuals credit file, 70-120 points are subtracted. So after bankruptcy you have to build your credit from start.
Thus paying off debts would not be an immediate solution but it will be beneficial in long rung. If you are not able to manage your debts on your own there is the bills consolidation program provided by debt consolidation company in which all your bills are consolidated into one and you have to pay only one payment each monthly to the consolidation company which they in turn distribute among your creditors.
Here is the source of a debt consolidation company named http://ezconsolidation.com for you reference who provide bill consolidation plan
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