You are probably asking yourself, “is it a good idea to declare bankruptcy?” You may be at the point in your life where you feel like declaring bankruptcy is the only option for saving your finances. But before you rush out and file for bankruptcy protection, there are some important factors to consider.
There comes a time in their lives where people can find themselves in dire financial trouble.
- Bankruptcy is a serious matter and should be used as a last resort.
- Bankruptcy can be helpful if you are in grave financial trouble, but it will have consequences that may follow you for years.
- It’s important to know what you’re getting into before making such an important decision, as it could affect your credit score for up to 10 years after filing the petition.
From student loans to credit card debt, the responsibilities of modern life can pile up quickly.
From student loans to credit card debt, the responsibilities of modern life can pile up quickly. The most common causes of bankruptcy are unexpected medical bills, loss of income and divorce. However, the second most common cause is credit card debt. Student loans rank third in terms of frequency with which they lead to bankruptcy filings.
Fortunately, there is a way out of this financial burden and it comes in the form of declaring bankruptcy.
Bankruptcy is an action taken by individuals and businesses alike who find themselves unable to pay their debts. It is not the same as debt consolidation, debt settlement or debt management.
Bankruptcy is a legal process where you can get rid of your debts and start over fresh, while remaining on good terms with your creditors (the people you owe money).
What is declaring bankruptcy?
Bankruptcy is a legal process of getting out of debt. It’s not something that will ruin your life, but it can actually help you start over financially. A bankruptcy filing will stop creditors from calling and garnishing wages, which means that you can potentially pay your monthly expenses again without worrying about them draining away money for debts.
It’s important to note that declaring bankruptcy doesn’t mean that all of your debt is removed; instead, a court will decide which payments should be discharged and which ones remain on the books with interest accumulating until they’re paid off in full (or not). This sounds like it should make things worse than they were before—but remember that this kind of relief usually comes with consequences: credit score drops, higher interest rates on future loans, etc.—so make sure before filing for bankruptcy protection!
Declaring bankruptcy is not as bad as people make it out to be.
It’s easy to think of bankruptcy as a last resort, something you do only when it’s too late and there are no other options. But it’s not. Declaring bankruptcy is a legal process that allows you to get out of debt by having your creditors forgive debts or cancel them (cancel means “pay nothing”). If you’ve got car payments, credit card bills, student loans, medical bills and other outstanding loans piling up around your ankles like snowdrifts—or if you’ve already lost your home or vehicle but still owe money on them—bankruptcy may be the way out for you.
There are two big differences between declaring bankruptcy and going into debt: one is legal; the other isn’t. Bankruptcy is a civil process; going into debt is criminalized by society even if it doesn’t fall under any laws at all. The second difference concerns how much control each option gives someone over their future finances: in many cases where someone declares bankruptcy because they can’t pay their bills anymore, they still have substantial control over their finances after declaring bankruptcy compared to what they had before doing so due simply because they don’t have any more creditors pounding down their door demanding payment every month anymore!
It’s easy to qualify for bankruptcy protection.
You can file for bankruptcy if you have debts that are more than $10,000 and less than $5,000 in assets. You must also prove that you are unable to repay your debts under Chapter 7 or 13 of the Bankruptcy Code. If you don’t qualify for Chapter 7 or 13, then it is possible that another type of debt relief may be available to you through a different chapter of the Bankruptcy Code—for example, Chapter 12 or 11.
If you are still deciding if you should declare bankruptcy, here are some factors to consider.
If you are still undecided about whether or not it is a good idea to declare bankruptcy, here are some factors that might help you decide.
- How much money do you owe? You cannot afford your payments if the amount that is due each month exceeds what you can pay out of pocket. Your attorney will be able to calculate this for you and let you know if declaring bankruptcy is an option.
- Are there other debts that are not included in your current debt consolidation plans? If so, then these should be included as well when calculating how much money comes out of each paycheck for payment purposes. They will also need to be negotiated with creditors before filing any paperwork because they will be responsible for paying them off along with the rest of their obligations after filing Chapter 7 bankruptcy
Bankruptcy is not something that will ruin your life but can actually help you start over financially
Bankruptcy is not something that will ruin your life but can actually help you start over financially.
Bankruptcy is a five-letter word that has a negative connotation and brings to mind failure and shame, but it’s an option for most people who need financial help. Bankruptcy is not a sign of failure or personal weakness; it’s possible to start over after bankruptcy and go on to be successful again. Bankruptcy isn’t even a crime; in fact, it’s preferable to declaring yourself bankrupt because it may allow some debts (like student loans) to be discharged while keeping your assets intact.
You can have your financial debt forgiven and start fresh. You just have to be willing to make the necessary sacrifices in order to get there.