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If you're in debt, chances are you didn't expect to be in this state. People get into debt for a variety of reasons, from making a huge purchase that they can't afford to losing their job. There are several options for debt relief, including claiming bankruptcy. However, bankruptcy isn't as simple as it sounds. The consequences of this decision should be weighed before filing for bankruptcy.
Pros of Claiming BankruptcyOnce you file bankruptcy, you won't be contacted by creditors any longer. The bankruptcy will also put a stop to foreclosures, wage garnishments and repossessions. While you won't be able to get a credit card right away to start rebuilding your credit, you may be able to rebuild your credit sooner than if you were to deal with the collection agencies. If repaying your debt would take up to ten years, bankruptcy can make the path easier and free.
Cons of Claiming BankruptcyA bankruptcy claim will show up on your credit report for as long as ten years. You won't be able to rebuild your credit or apply for a mortgage while there is a bankruptcy claim on your report. Bankruptcy doesn't take care of every type of charge, like student loans and back taxes. In court, you'll have to explain to a judge how you got into a financial mess, which is embarrassing for most people. Also, claiming bankruptcy will land your name in public court records and possibly your local newspaper.
Tips for Claiming BankruptcyClaiming bankruptcy is not something that should be taken lightly. You should only turn to this solution if you've tried every other way to get out of debt and haven't been successful. There are three types of bankruptcy claims: Chapter 7, Chapter 11 and Chapter 13. Each type of claim has a distinct method for repaying your debt, filing the claim and using your own assets for liquidation. While you can file for bankruptcy on your own, protect yourself and your assets by hiring a bankruptcy lawyer.
What else can I help you with?
What are some pros and cons to debt consolidation?
"Some pros to debt consolidation is that it can help you get your debt under control, and you may only have to make one payment. The con's are that it will look bad on your credit."
What are some of the pros and cons of debt consolidation?
Some pros of debt consolidation are avoiding late fees, and extra charges from having high credit score. Some cons include higher interest rates for other loans or taking more time to pay off your debt for good.
How much debt to declare bankruptcy?
You should declare all of it. The bankruptcy fee for debts over £15,000 is £700 (inclusive of deposit, and court fees), so you may as well include everything. Some debts are not written off in Bankruptcy however. Take advice from a formal advice agency or check out pros and cons before applying.
What are the pros and cons for being a architect?
what are the pros and cons of being an architect
What are the pros and cons of debit cards?
The Pros of having a Debit card is you don't have to write a check and also won't let you go in debt. The Cons of having a Debit card is it makes it too easy to spend money at least until your account is empty.
What are the pros and cons of using a debt settlement service?
My opinion here: the only pro is that it satisfies the debt counselling requirement to declare bankruptcy under the new 2005 rules. Debt management companies are known for charging huge fees and not paying creditors on time, getting you into deeper trouble. I wouldn't bother unless you want to declare bankruptcy.
Do you know any debt settlement companies?
Accredited Debt relief, Freedom Debt Relief,and Eagle One are just three of the debt settlement companies out there. When looking into this be sure to check that they are a reputable company. Check into the pros and cons of taking such action.
What are the pros and cons of bankruptcy refinancing?
The pros to refinancing in bankruptcy are: You can refinance your home and pay off your trustees if you have enough equity in your home. You can save money each month and start rebuilding your credit. Cons: you'll need to wait untill your 37th month of bankruptcy if you don't want to be held responsible for the unsecured debt that you filed for. Interest rates will be higher and you may have trouble finding a lender.
How can a bankruptcy service help me?
Bankruptcy services can give you all the information that you need. They can tell you all the pros and cons of filing.
What were the pros and cons of Texas Republic?
The pros were that it is free from mexico and also knows there army's and advancement in wepons bit the cons were that it was small and weak they were in debt and had no money
What are the most common debt solutions?
The most common solution for debt is to consolidate all debt into one loan. This helps to reduce the interest and time it takes to repay it. This can be done through a bank or other credit agency.
What are some pros and cons to debt consolidation?
"Some pros to debt consolidation is that it can help you get your debt under control, and you may only have to make one payment. The con's are that it will look bad on your credit."
What were the pros cons for the Mayan settlement?
most of them died b/c they didnt have the things we have today
What are some of the pros and cons of debt consolidation?
Some pros of debt consolidation are avoiding late fees, and extra charges from having high credit score. Some cons include higher interest rates for other loans or taking more time to pay off your debt for good.
How can one get tips on bankruptcy debt relief?
If one requires tips on bankruptcy debt relief there are a few sites that offer some good information. One can find tips on sites such as "Bills" and Debt Relief Pros.
How much debt to declare bankruptcy?
You should declare all of it. The bankruptcy fee for debts over £15,000 is £700 (inclusive of deposit, and court fees), so you may as well include everything. Some debts are not written off in Bankruptcy however. Take advice from a formal advice agency or check out pros and cons before applying.
Pros and cons of jury selection?
what were the pros and cons for the nulification
