File Bankruptcy Yourself – Our Update

Jul 3rd, 2014 | By | Category: Debt

Like most anything else, there is a right way and a wrong way to file bankruptcy, just because there is a good reason and a bad reason to file bankruptcy. Your success with your filing will depend heavily on what caused you to enter into the position of thinking you need to file for bankruptcy, as well as the state of your personal assets.

The most common reasons for filing for bankruptcy are marital problems, unemployment, huge unexpected medical expenses, or largely overextended credit card bills. But filing for bankruptcy may not necessarily be the easy way out that many people think it is, and as it actually may have been a few brief years ago when the bankruptcy laws were simpler and more sympathetic to a person’s circumstances. But the laws today are tougher. It’s very difficult to successfully file bankruptcy without a good case and good reasons to back it up. Also, many people don’t consider bankruptcy alternatives, where you need to understand that bankruptcy should be your LAST consideration, not your first one.

Let’s widen the topic

If however you feel that filing bankruptcy is your only option, and I hope you have thoroughly explored all of your options and alternatives before reaching that conclusion, you should definitely discuss this with a good bankruptcy lawyer or bankruptcy attorney. In many cases, your first consultation will be at minimal or even no charge, and the lawyer can advise you as to what course to pursue, or if bankruptcy declaration is going to help, or maybe make matters very much worse overall. There is a form at my web site which is free and can put you in contact with a local bankruptcy attorney who can see your unique situation and would be aware and well versed in how bankruptcies are handled in your state and your particular section of the country.

A bankruptcy lawyer can help you identify factors like if it can be proved or demonstrated that you have abused your credit privileges, then you may even be disqualified from filing for bankruptcy. This is known as a means test’. Of course, there are always unique factors which got you to this situation, such as divorce, medical bills, unexpected and unavoidable large expenses, etc, all of which can play a factor with respect to whether you can file bankruptcy, and if you can, if it will contribute to you at all.

The biggest disadvantage to filing personal bankruptcy is that the bankruptcy will be issued on your credit report for six years or longer after you’re discharged from bankruptcy, for most people. This is a vast red flag on your credit report. Obtaining new credit after filing for bankruptcy is going to be difficult or even impossible from most traditional lenders and credit card issuers.

Bankruptcy is a major life-changing event. Your primary task after filing bankruptcy will be to rebuild your financial life. A bankruptcy will devastate your credit rating and stay on your credit report for ten years. But the good news is that you can begin to build better credit as soon as your bankruptcy is closed.

Bankruptcy or foreclosure? If you’re determined to remain in your house, bankruptcy may be an option. If you’re ready to pack up, foreclosure might work better. Your best bet is to get sound legal advice from a bankruptcy attorney.

With bankruptcy, like anything else, going about it the right way and knowing what you’re getting into is the better way to approach it so that you don’t end up doing more damage than the situation you’re already in.


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