Empower Yourself By Knowing The Basics Of Bankruptcy

Making the decision to file bankruptcy is not an easy one. You have to balance the potential damage to your credit, loss of assets, and any attached stigma against the rising hassle of late fees, penalties, phone calls from creditors, and soaring interest charges.

Any decision to file bankruptcy requires careful consideration of a lot of factors. If your bankruptcy is successful, an enormous amount of your existing debt and pressure will be lifted off your shoulders. Your credit will be damaged, but this can be re-built over time. Shedding this debt and the associate pressure might just be what you need to start rebuilding your financial future. It is important to explore all the options. Bankruptcy might not be right for your situation...however exploring this option will give you the knowledge to make the right decision...an Empowering one.

You need to make a critical assessment of your financial condition. Creating an accurate picture of your assets, liabilities, and cash flow will be a start in the right direction. There are numerous services on the internet as well as locally, to educate yourself on the bankruptcy procedure. These are all good, but you should take the time to consult with a qualified bankruptcy attorney to ensure that you have a clear, unbiased, view of how you should proceed.

If at any time you have seriously considered bankruptcy, you need to educate yourself on all aspects of bankruptcy. Bankruptcy is not for everyone, however do not wait until your car is being repossessed, or your wages are being garnished before you act. Be proactive and assertive with proper planning...an Empowering move.

There are two types of bankruptcy...Chapter 7 and Chapter 13.
Chapter 13 evolves around debt reorganization and a repayment plan typically over 3-5 years. During this time, provided you are making you payments in a timely fashion, your creditors cannot take any action against you. Chapter 7 is associated with shedding all debt. Your nonexempt assets are liquidated to mitigate your debts. Exempt debts...debts that cannot be liquidated...include your primary residence, your vehicle, certain items of personal property, tools and work equipment, as well as numerous other categories of property.

After you case is finished and all debts that were discharged are forgiven, the bankruptcy proceeding is closed. You may not file again for seven years. Bankruptcy is a viable options, but not for all cases. You must carefully weigh the positive and negative points prior to making a decision. When you are faced with these types of financial challenges, be proactive. Put together a plan, be assertive...be Empowered.