If you’re buried under mountains of debt and are in the process of filing bankruptcy, don’t feel guilty because you’re in good company. Just turn on the news and you’ll see corporations filing bankruptcy without any hesitation. Many corporations file for bankruptcy to get rid of uncontrollable debt and improve their balance sheet. The list of corporations seems endless with major airlines, large banks, retailers and even Wall Street brokerages. Bankruptcy no longer carries the mark of shame as in yesteryear. There are a few chapters of bankruptcy and all of them have their own benefits.
Knowing how to file for bankruptcy can be an invaluable lesson in life, and basics should even be taught in school. Having the confidence to take financial chances has made this country great and entrepreneurs wouldn’t be able to do that without the availability of bankruptcy filing. There are three chapters that are the most common in bankruptcy. It’s important for you and your bankruptcy attorney to discuss your options as the amount of debt plays heavily into the consideration of which Chapter to use. An individual should make a thoughtful decision when filing for bankruptcy because of the negative impact to their credit. Whenever making choices weigh the negative aspects against the positives, then decide if the negatives are a deal breaker.
Looking for information on bankruptcy online is a great way to educate yourself. Always search for alternatives before making your decision, as one of them might be a better suit for your financial needs. Some people try loan consolidation and financial counseling prior to filing bankruptcy. Most of these people end up in personal bankruptcy anyway, being just a little poorer from the payments they had to make. Filing for bankruptcy can be emotionally draining and should be fully understood before taking the leap.
Although there are other causes of personal bankruptcy, about 75 to 85 percent can be attributed to unemployment, divorce and medical bills. Everyone’s reason for filing bankruptcy may be different, except there is one common denominator, a large amount of unsecured credit card debt with unruly interest rates. Individuals usually file personal bankruptcy when they see there is no other way out of debt. The decision to file is very serious and should be well thought out with the help of a professional.
Once the decision is made, many express the feeling of relief, knowing that the creditors can no longer harass them because of the automatic stay. When the bankruptcy is filed with the court, the automatic stay is imposed and all collection efforts, including foreclosure, and any contact with the debtor must stop. Many individuals feel intimidated about filing for bankruptcy because of the fear of what happens to them after they file. Basically, the fear of the unknown is what people worry about. When someone’s buried in debt, anything has to be better than that.
With that said, the positives of bankruptcy should outweigh the ding on the credit report. You’ll be able to stop screening your calls because the creditors will no longer be able to contact you. Wage garnishments from creditors will stop and you will start getting your entire paycheck again. After your unsecured debt is discharged, he should have extra money to keep current on your rent, car payment, phone and other living expenses. Personal bankruptcy has many positive aspects as well as a few negatives, that’s why if you’re heavily in debt and feel there is no way out, consult a local bankruptcy attorney to find out if bankruptcy will work for you. When it’s all done you feel a huge weight lifted off you as you begin your life trying to live debt free.