3 Things You Need To Understand About Bankruptcy…

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From time to time, we have to assess our attitude toward our possessions and if it’s truly worth getting in so much debt over. Our lives are so expensive, but we can find ourselves easily overwhelmed by credit card debt, loans, and ultimately, defaulting on our bill payments.

When you start to fall behind, bankruptcy is something that can start to look tempting. However, bankruptcy is truly a last option, it is not a reason to overspend or not have a budget, it is the last resort and one of the most difficult option to consider. You need to consider all other options and the effects bankruptcy can have on you and your family…

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Chapter 7 or Chapter 13? 

The two most common in the United States are Chapter 7 and Chapter 13 bankruptcy, and while both result in a fresh start; you still need to consider if it is worth your while. And although it can be a new beginning, in certain areas of bankruptcy, such as Chapter 13, you will be required to develop a plan to repay all of your debt.

This will have an impact to how you will restart and how long it will take you. You need to remember it took you a long time to get into your mess and the emotional struggles don’t end at bankruptcy, they actually continue on as you are repaying or rebuilding your life.

Finding Professional Lawyers

There are professional resources in which to cope with the overwhelming repercussions of bankruptcy; legal firms like Eric Palacios & Associates law firm can always guide you through the process, so that you’re not entering into proceedings with half the knowledge.

If you are deciding whether to file for bankruptcy or not, these professional resources could give you some advice as to where bankruptcy could help you, and, more importantly, where it could not.  It is very important to make sure you do the research and understand what you are doing and why you think it is necessary. For example, if you’ve got financial problems relating to taxes, student loans, or child support, bankruptcy doesn’t help to erase these responsibilities.

Emerging Out The Other Side

Once you’ve come up with a considerable plan as to the best type of bankruptcy to file for, and you have gone through the process, you may feel like you were given a clean bill of health, but it’s important to remember that while you’ve managed to keep the wolves from the door, filing for bankruptcy means that it stays on your record for 7 and 10 years and you may struggle to find other lines of credit post-bankruptcy.

Needing FINANCIAL ADVISING, but it costs too much? I offer free 30 min consultations to help you get back on track!

For this reason, you should give thought to the manner in which you spend money and how you fix the debt or avoid the debt. Creating a debt consolidation plan could be a better option, and in the United States, it’s only worth filing for bankruptcy if you have a considerable amount of debt, $15,000 at the very least.

Dealing with bankruptcy is one of the most intimidating circumstances we can go through, but if we are sure that it’s the only way out, make sure that you are doing it the right way and you make the commitment to never go down the debt and overspending road again. 

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Check out these other great resources to help you with your personal budgeting –

How To Prepare Your Finances For The Unexpected…

3 Ways To Make A Successful Living On The Road…

Do These 4 Things When Facing A Financial Crisis…

A Brief Guide on Planning Your Family’s Future Finances

Stop Paying For Other People’s Mistakes (3 Ways You Are Wasting Money)…

Check out these great resources with Amazon on debt and budgeting – 

Yes, I include affiliate links in all my blogs. I get paid a little each time you click and buy from the included links, but I only recommend products that I use myself. Thanks for supporting our blog and our dream of changing the financial futures of all families and individuals! ~ Lydia Y-S.

#banking #bankruptcy #debt #debtfree #restarting #budgeting #struggles #lasthope

 

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