Filing Bankruptcy

Pros & Cons Of Court Liquidation or Reorganization

Stopping Debt Collectors

Filing means submitting your documents with the Court and having a Docket Number assigned. Once this is done, debt collectors may no longer contact you directly to attempt to collect the debt. This does not apply if you are representing yourself in your own filing however.

Under normal circumstances, if you hire an attorney to represent you, the creditors must contact your attorney. If you represent yourself, then they are allowed to contact you even after you have filed. It should be noted, however, that this is rare, and most creditors will just use the Court procedures for contact, objections, etc.

Benefits Of Filing Bankruptcy

The most dramatic benefit is creditors must immediately cease collection actions pending the outcome of the bankruptcy. This applies once you, or the Court, have notified them that the filing has taken place. Anther major benefit ... it allows you to start over from scratch without burdensome debt, and with some assets to minimize the risk of your being bankrupt again.

The Bad Side Of Filing Bankruptcy

Obviously the worst effect is the negative impact on your credit record.

Once you file bankruptcy, it stays on your credit report for 10 years.

And, considering that you can only file once every 7 years, this is a considerable amount of time to carry such a negative mark on your credit.

Filing bankruptcy can make it more difficult for you to obtain credit, buy a house, car, or get other financing. However it isn't impossible to get financing, just harder, and your interest rates may be higher than someone who had never resorted to filing. On the other hand, creditors know you can't file for another 7 years, and many are quite happy to extend credit to you right away after filing.

Is Filing Bankruptcy Right For You?

Truthfully, only you can answer the question of whether bankruptcy is right for you or not. Do the financial worksheets we provide, review your finances, talk with an attorney, and then weigh your options.

Filing bankruptcy is drastic but can also be the fresh start you need.

Bankruptcy is really the very last resort for debt relief. If you can't afford to pay your bills, you have no savings, and have tried credit counseling, then consider filing.

The bottom line is … if your budget won’t sustain the ability to payoff your debts within 5 years, you need to consider bankruptcy.

If your budget does allow you to live reasonably, and payoff your existing debt, but you need to tighten your financial belt a little, I recommend you do that.

You should contact your creditors directly, or use a credit counseling service , and create a repayment plan you can both live with, then stick to it.

I guarantee this will reduce the stress of worry, plus give you a feeling of satisfaction and accomplishment knowing you have a plan and goals to work toward.

If you just can’t deal with the financial stress, and your budget just won’t stretch, then don’t let fear, shame, or pride stand in your way. Bankruptcy is not debtor’s prison, you can survive, you can come out of it better … bankruptcy can be the light at the end of the tunnel.

With the new laws now in effect, we strongly recommend you find a qualified attorney in your area that knows the bankruptcy laws and exemptions in your state. We highly recommend that you be smart and safe! Use this free online legal referral service ... that is absolutely free and confidential!

Take a few moments now to complete the form below to locate a qualified bankruptcy attorney in your area.

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Is There Life After Filing Bankruptcy?

Life goes on after bankruptcy, even the ability to repair your credit, and get financing for just about anything. There is one thing you need to be aware of ... a large percentage of bankruptcy filers, file again!

Repeat bankruptcy filings are at an all time high of 13% and climbing dramatically.

One of the main reasons is the lack of financial education and counseling to help people manage their debt and finances. Consequently, they get in trouble again, and fall back on their last choice to get them out of debt ... again.

To avoid becoming a member of the Repeat Bankruptcy Club, we strongly recommend you take the time, and make the effort, to learn how to manage your finances properly. Don't repeat your mistakes!

Not sure if bankruptcy is right for you? Compare your options to consolidate debts, or get a free debt evaluation now .

Find out if you can reduce your credit card payments by 50% or more. Get real help that will assist you in finding a way to pay your debts and negotiate with your creditors.

Debt Settlement is a viable alternative to bankruptcy, see if you qualify.

Return to Bankruptcy Facts, summary of the laws, chapters, and alternatives.

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