Bankruptcy Facts For Your Debt Relief

By Author: Vikram kumar
Total Articles: 9397
Comment this article

This is a hard time for many people with the economy the way it is. More and more people are getting into debt due to unemployment, the recession, credit card debt, etc. And their credit card score suffers as a consequence, making it hard to get a loan for a house, car, etc. Sometimes debt is necessary to survive though, but there are ways out of it. This is where filing for bankruptcy may come to mind. It’s important to know all of the important bankruptcy facts as you decide if it is the best way to settle your debts.

Bankruptcy is a good idea for individuals who hardly have any assets because if they did, they might have to liquidate them to pay the creditors back. Here are more bankruptcy facts to help you decide if you want to file.

You hear about famous rich people filing for bankruptcy. This is because they have found ways to use the system so that it helps benefit them. And if they do it, why shouldn’t you? Just make sure to do your research first so that you know what you’re doing. And when you file, include all the eligible debt that you have. Don’t leave anything out. It’s important to note ...
... however that there are a few debts that can’t be discharged. These include student loans and tax bills. They may work with you in settling these, so be sure to research all of these bankruptcy facts to do things right.

One of the nicer bankruptcy facts is that once you file, your creditors are not allowed to try to contact you to collect because an “automatic stay” is placed. If they do try to contact you about your debts, they are breaking the law, so inform your lawyer right away if this happens. It’s important to realize though that filing for bankruptcy can have its downs. Your credit card score will show your bankruptcy for the next ten years. But, there is an upside. During this time, you can re-establish some of your credit on your credit card score. There are plenty of companies that specialize in helping you re-establish your credit so that your credit card score looks more promising. So, it isn’t the end of all things to have bankruptcy show up on your credit card score. Just be diligent and responsible and you can get your credit back up.

It’s important to note that the law has changed on the eligibility for filing for chapter 7. It’s vital to look into this with your lawyer to see if you are eligible. However, you can only file and receive a chapter 7 bankruptcy just once each 8 years. So, you will want to be extremely careful to not accumulate too much debt after you have received the chapter 7 bankruptcy discharge. But you can still file for chapter 13 bankruptcy whenever you want.

So, just be sure to do your homework when filing for bankruptcy and consider all of these bankruptcy facts. There is a relief to debt.

Author Bio

For more Bankruptcy Facts to help you out of debt, head to End Personal Debt to find out the best debt solutions for you, as well as credit counseling to help you with your Credit Card Score .