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Have you lost your job? Have you gone through a divorce and you have suffered financially because of that? Have you got a lot of credit cards and suddenly you find out that you have made a lot of debts? For many people all those and many other situations can be reasons for declaring bankruptcy. But if this decision is reasonable? Filing for bankruptcy is a very serious step and you must think twice before you make this step.
Personal bankruptcy has very serious and negative consequences, which will affect on your further life for many years. Do you want that? Many people think that filing for bankruptcy is an easy way to get rid of debts, but this is not true. If you file for bankruptcy under Chapter 7, this will save you from many debts but anyway you still will have to reply such debts like education loans, alimony, etc. Your valuable assets will be sold to cover your debts. Your social and business reputation will be ruined. Your credit report will be bad too because your credit history will have bankruptcy note during up seven to ten years (fifteen years in the case if you have already filed for bankruptcy in your life). Your life conditions will be changed to worse, because it would be hard for you to get a credit in a bank or to get a credit card, you will suffer because of changed life conditions as you have used to certain life conditions. And so on, so on.
Should you avoid filing for bankruptcy? Or is it better to chose this way?
A lot of people make the decision to file for bankruptcy because they do not know much about bankruptcy process and have the wrong information about it. There are some the most common myths about bankruptcy below.
As it has already been mentioned many people consider bankruptcy as the easiest way to get rid of debts, but in reality the situation is worse than most people realize.
All your debts will be liquidated if you file for bankruptcy. Declaring bankruptcy won’t allow you to get rid of all debts. There are some types of debts which can not be discharged in bankruptcy, these are taxes, providing for your children, student loans etc.
Bankruptcy will give you a fresh start. Bankruptcy does not bring you back in time, it will bring you to a very unpleasant beginning actually. AS your credit report will have bankruptcy mark fro about ten years, you will not be able to get credit items or credits will cost much in interest.
You can keep some savings out of bankruptcy. This is not true. The bankruptcy laws are very strict, you will be punished if you try to hide some accounts, savings or income.
Filing for bankruptcy is easy. It is not true again. Filing for bankruptcy is very difficult, takes much time and it will cost you much actually.
Debts will be removed for free. Your debts will be removed fro free only by selling your assets. Your debts will be liquidated but you have lost your house, car etc.
So, should you avoid bankruptcy or you shouldn’t?
Almost all of us still remember the times when one could easily buy a thing even if one hadn’t got enough money. Credit was a simple way out. No wonder that now many of those who hunted for a credit, are looking around for how to avoid bankruptcy.
People who managed to get into the situation when they owe more money than they have, definitely have to look for ways to avoid bankruptcy.
If facing such difficulties it is smart to use any tools to get over it. Take advantage of such great chance as the Internet technologies. Using them at full capacity could give great results. Making use of search engines, forums, social networks,web sites one can discover many tips to avoid bankruptcy and a great deal of other important info. Also signing up for RSS on this blog will assist to keep track of new publications and tips on the topic.
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