Considering Bankruptcy?
Is your current credit situation making you consider filing for bankruptcy? Filing bankruptcy is a "last-resort" option for people who are experiencing extreme problems paying their bills.
Often, those who file for bankruptcy has many negative marks on their credit report. They typically have been declined for credit recently, have lenders calling them and have bills which they pay late or not at all.
It is not unusual for a home or vehicle to have been repossessed, or under the threat of repossession.
If you having problems such as these, then you are searching for relief. Not being able to pay your bills is stressful and humiliating.
If you are considering bankruptcy, it is absolutely critical that you discover the permanent ramifications of a bankruptcy.
Bankruptcy laws were made with you in mind. When you file for bankruptcy, most or all of your debts will be closed.
This happens after your assets are divided amongst your creditors. This is possible, through bankruptcy, even if your assets don't pay all your debts.
This procedure is known as liquidation, or Chapter Seven (7) bankruptcy. Chapter 7 bankruptcy is the most popular type of bankruptcy. A "trustee" or government worker 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 Supreme Court ruled that retirement savings do not have to be included in your assets that are liquidated.
Regardless of which bankruptcy you choose, it will likely be on your credit reports for 7 or 10 years. Filing for bankruptcy frees you from your existing lenders, but not from any future lenders.
If you do file bankruptcy, it will narrow your choices. High credit is possible to restore, but it will take some time and patience.
A couple things to remember:
1. Any negative item can potentially be removed from your credit report.
2. New, current good credit will cause your score to 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.
Often, those who file for bankruptcy has many negative marks on their credit report. They typically have been declined for credit recently, have lenders calling them and have bills which they pay late or not at all.
It is not unusual for a home or vehicle to have been repossessed, or under the threat of repossession.
If you having problems such as these, then you are searching for relief. Not being able to pay your bills is stressful and humiliating.
If you are considering bankruptcy, it is absolutely critical that you discover the permanent ramifications of a bankruptcy.
Bankruptcy laws were made with you in mind. When you file for bankruptcy, most or all of your debts will be closed.
This happens after your assets are divided amongst your creditors. This is possible, through bankruptcy, even if your assets don't pay all your debts.
This procedure is known as liquidation, or Chapter Seven (7) bankruptcy. Chapter 7 bankruptcy is the most popular type of bankruptcy. A "trustee" or government worker 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 Supreme Court ruled that retirement savings do not have to be included in your assets that are liquidated.
Regardless of which bankruptcy you choose, it will likely be on your credit reports for 7 or 10 years. Filing for bankruptcy frees you from your existing lenders, but not from any future lenders.
If you do file bankruptcy, it will narrow your choices. High credit is possible to restore, but it will take some time and patience.
A couple things to remember:
1. Any negative item can potentially be removed from your credit report.
2. New, current good credit will cause your score to 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 info about how to remove bad credit from debt collectors such as LVNV Funding.
posted by Debt Consolidation Loan at
7:59 AM
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