How to File for Bankruptcy
Deciding to file for bankruptcy is a very serious choice. By entering into bankruptcy a series of federal laws are activated that will allow someone to be unburdened of his or her debts and start again financially with a clean slate. In 2005, it became more complicated to start over again after bankruptcy, this means it's important to understand the full benefits and drawbacks before declaring bankruptcy. First off, consider all your options before deciding that bankruptcy is the best one. Depending on what your debts are accrued from it may not be the right one for you, for example, mortgages and child support do not fall under bankruptcy relief.
Another negative side effect is that bankruptcy will remain on your credit record for 10 years and this may mean you are unable to get credit or not without having a very low credit score. Bankruptcy is made to be a choice that comes about when you have no other options. Always work with a credit counselor or professional to help you decide how to resolve your debt situation. Other financial solutions are loan modification or refinancing. Finally, don't think that bankruptcy is free, it also has a price and you will be paying an attorney's fees, on average expect to pay around $2,000.
Another negative side effect is that bankruptcy will remain on your credit record for 10 years and this may mean you are unable to get credit or not without having a very low credit score. Bankruptcy is made to be a choice that comes about when you have no other options. Always work with a credit counselor or professional to help you decide how to resolve your debt situation. Other financial solutions are loan modification or refinancing. Finally, don't think that bankruptcy is free, it also has a price and you will be paying an attorney's fees, on average expect to pay around $2,000.
