Filing Bankruptcy

Bankruptcy is not a "quick fix" for your financial problems. Filing bankruptcy should be a last resort after it has become obvious that you simply cannot pay your creditors and you need help. So rather than asking yourself "Can I file for bankruptcy?" the more appropriate question might be "Should I file for bankruptcy"?

Since we're asking questions, let's ask a few more:

1 green bullet  Do you have so much debt that your income will not cover the cost of carrying the debt?

1 green bullet  Have your attempts to make arrangements with your creditors to repay your debts proved unsatisfactory? If so, you may be wondering -- "Can I file for bankruptcy?" -- and it's very likely that you can.

Here are some factors that will help you make a more informed decision before filing bankruptcy:

Filing bankruptcy may be the best action if you have thousands of dollars worth of debt. If your debt load is only a few hundred dollars, you can probably work out an arrangement with each of your creditors and this arrangement will end up looking better on your credit report.

Bankruptcy has helped many people to achieve financial freedom and pay off large debts, but filing should not be taken lightly, as it also has serious consequences.

Most credit companies will not issue lines of credit or loans to individuals with bankruptcies in their credit report, so if you plan on purchasing a home or new automobile at any time in the future, keep this in mind. A bankruptcy can remain on your credit report for up to 8 years. Although some companies are willing to make exceptions, it's best to keep your credit options open if you can.

So, back to the question: Can I file for bankruptcy?

In most cases, anyone can file for bankruptcy, but you will need to know which chapter of bankruptcy to file under. If you have steady job, Chapter 13 bankruptcy may be best for you, since an agreed upon amount will be taken from your paycheck each pay period and applied to settle your debts.

If you own valuable property, such as a luxury car or an expensive home, filing for Chapter 7 bankruptcy may be the best decision, so you can sell these items and apply the money to your debt.

Chapter 11 bankruptcy is usually limited to businesses. If you own a business, Chapter 11 bankruptcy can help you to use the business as collateral and lengthen the time that you have to pay your debts.

No matter what type of bankruptcy you choose, you should make sure that you have an in-depth conversation with your lawyer, attorney or financial advisor about all your legal or financial issues to make sure that this is the best decision for you. Once you file, or even before you make the final decision to file, you may want to attend bankruptcy classes so that you will know how to organize your finances, and what to do when you meet with your creditors to make payment arrangements. Also, if consolidating debt or taking out a second mortgage are viable options for you, consider these before putting a bankruptcy on your credit report.

1 green arrow right  To get a specific answer to your questions about filing bankruptcy visit Curadebt.com. They can outline all your options.

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