Decide IF its time to file for debt bankruptcy RELIEF
Debt Bankruptcy Relief Options
Chapter 11 | Chapter 13
Debt Bankruptcy Relief Considerations
Is It Right For You?
A consumer debt bankruptcy relief option is one you might need to exercise when you have no other means to get out of extreme personal debt. This debt relief option applies when your financial situation is in terminal state. It is generally considered the option of last resort due to its long-term negative impact on your personal assets and creditworthiness. Consumer bankruptcy law exists to help people who have taken on an unmanageable amount of debt to make a fresh start. But it isn’t a simple process and doesn’t always lead to a happy ending. Make sure that you are really, really sure about it.
The consequences of debt bankruptcy are significant, require careful consideration and legal advice should be consulted before taking this decision. You should be aware that your credit history and personal life will be negatively affected for an extended period of time. Filing debt bankruptcy should not be considered unless you have reviewed all other debt relief options.
But bankruptcy isn’t the end but often the first step toward a new life. For many, it is the best and only sensible debt relief option for solving excessive debt problems that can happen unexpectedly in life. If you find yourself in a situation where you are drowning in debt, with no solution in sight, you owe it to yourself and family to seek legal advice as to the potential benefits of consumer debt bankruptcy.
Does It Affect My Credit?
Yes it does. It is trashed. A consumer debt bankruptcy judgement is the most negative entry on your credit report. It is simple to understand. You used the bankruptcy legal process to discharge your debt obligations and walk away from your creditors.
However, since you were already in a financial hardship situation prior to the consumer bankruptcy judgement, your credit history profile was already damaged due to late or non creditor payments.
Bankruptcy will affect your credit scores for as long as it remains on your credit reports. That’s because your scores are generated based on information found in your reports.
For a Chapter 7 bankruptcy judgement, it will remain on your credit report for ten years. A Chapter 13 bankruptcy judgement is somewhat different because you agreed to repay your creditors in a three to five year period of time, so it will remain on your credit report for only seven years.
But the impact of your bankruptcy judgement on your credit scores will diminish over time.
Your credit scores should begin to recover even while the bankruptcy remains on your credit reports. This assumes that you take steps to pay your bills in full and on time and use credit responsibly.
Finally you need to avoid the biggest mistake people make after eliminating their personal debt. That is, not stopping making new credit card charges.
Your life goes on.