There comes a time when filing for bankruptcy has to be done even though very few want to make that decision. Bankruptcy will have other ramifications besides affecting your credit rating.
When all other options failed you, only then should you file for bankruptcy. Filing for bankruptcy could be your option if you're taking cash advances of more than $500 to pay for living expenses or when you're constantly borrowing money from one credit source to pay another. Bankruptcy is the only option if you borrow to meet regular expenses like utility bills, and food and the only calls you get are from creditors.
If you can no longer afford paying your existing debts, then bankruptcy is a way for you to get out of your hard financial times.
When it comes to bankruptcy, the most commonly filed form is chapter 7 and 13.
Chapter 7 is the most common for the individual. The complete erasing of quality debt is what this is. Released from all repayment obligations is the debtor. Don't take chapter 7 bankruptcies lightly because they're very serious. For 10 years, while giving you an immediate fresh start in repairing your finances, it will remain on your credit. You will be seen as a high risk and you will also be noted as a person who is financially irresponsible.
Chapter 13 is less harmful to your credit. You may still be considered a credit risk though you don't look like you're financially responsible even though there are still marks against you because you'll be working to repay your debts on a payment plan. You'll can keep your home because of chapter 13 and they won't start selling your assets to pay back your creditors unlike in chapter 7.
When you've gone through all other available options, only then should you consider filing for bankruptcy. With the help of consolidation loans, debt counseling, etc., you can reduce your debt and avoid bankruptcy. This can help save your credit record and improve your chances of getting credit sooner than if you file for bankruptcy. If there seems no other option, consult a bankruptcy lawyer for advice before taking any action.
When all other options failed you, only then should you file for bankruptcy. Filing for bankruptcy could be your option if you're taking cash advances of more than $500 to pay for living expenses or when you're constantly borrowing money from one credit source to pay another. Bankruptcy is the only option if you borrow to meet regular expenses like utility bills, and food and the only calls you get are from creditors.
If you can no longer afford paying your existing debts, then bankruptcy is a way for you to get out of your hard financial times.
When it comes to bankruptcy, the most commonly filed form is chapter 7 and 13.
Chapter 7 is the most common for the individual. The complete erasing of quality debt is what this is. Released from all repayment obligations is the debtor. Don't take chapter 7 bankruptcies lightly because they're very serious. For 10 years, while giving you an immediate fresh start in repairing your finances, it will remain on your credit. You will be seen as a high risk and you will also be noted as a person who is financially irresponsible.
Chapter 13 is less harmful to your credit. You may still be considered a credit risk though you don't look like you're financially responsible even though there are still marks against you because you'll be working to repay your debts on a payment plan. You'll can keep your home because of chapter 13 and they won't start selling your assets to pay back your creditors unlike in chapter 7.
When you've gone through all other available options, only then should you consider filing for bankruptcy. With the help of consolidation loans, debt counseling, etc., you can reduce your debt and avoid bankruptcy. This can help save your credit record and improve your chances of getting credit sooner than if you file for bankruptcy. If there seems no other option, consult a bankruptcy lawyer for advice before taking any action.
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