Is your credit situation making you think about filing for bankruptcy? Filing bankruptcy is a "last-resort" option for individuals who are experiencing trouble paying their bills.
Frequently, someone who files for bankruptcy has many bad credit marks on their credit report. They often have been rejected for credit recently, have creditors calling them and have multiple bills which they pay late or not at all.
It is common for there will be a home or vehicle which has been repossessed, or under the threat of repossession.
If you having problems such as these, then you are searching for relief. Not being able to pay your bills is stressful and humiliating.
If you are thinking about bankruptcy, it is absolutely critical that you discover the permanent repercussions of a bankruptcy.
Bankruptcy laws were created with you in mind. When you file bankruptcy, most or all of your debts will be erased.
This happens after your assets are divided amongst your creditors. This is possible, through bankruptcy, even if your assets don't pay all your debts.
This procedure is known as liquidation, or Chapter Seven (7) bankruptcy. Chapter 7 bankruptcy is the most popular type of bankruptcy. A "trustee" or government worker handles all the administrative and supervisory duties of the bankruptcy proceedings.
Chapter 11, 12, or 13 Bankruptcy provide rehab to your business, and choice of using future earnings to pay lenders. Once you begin the bankruptcy proceedings, creditors can no longer collect on your debts.
Also, you will not be able to transfer any assets that are part of the estate (so, forget about hiding your savings account or gold coin collection with a trusted relative or friend!) Further, transferring ownership of assets prior to filing bankruptcy typically does not work, and many are invalidated.
Recently, the U.S. Supreme Court decided that retirement saving accounts do not have to be included in your liquidation.
Bankruptcy and your credit reports - regardless of which bankruptcy you choose, it will typically remain on your credit reports for 7 or 10 years. Filing for bankruptcy frees you from your existing creditors, but not from any future creditors.
If you do decide to file bankruptcy, it will narrow your options. Good credit is possible to restore, but it will take some time and considerable patience.
Things to remember:
1. Any bad credit item can potentially be removed from your credit report.
2. New, current good credit will cause your score to improve.
3. Old, derogatory credit falling off your report will also boost your score over time.
4. You must monitor your credit reports regularly - and dispute questionable derogatory marks such as charge offs, collection items, and late payments. - 16036
Frequently, someone who files for bankruptcy has many bad credit marks on their credit report. They often have been rejected for credit recently, have creditors calling them and have multiple bills which they pay late or not at all.
It is common for there will be a home or vehicle which has been repossessed, or under the threat of repossession.
If you having problems such as these, then you are searching for relief. Not being able to pay your bills is stressful and humiliating.
If you are thinking about bankruptcy, it is absolutely critical that you discover the permanent repercussions of a bankruptcy.
Bankruptcy laws were created with you in mind. When you file bankruptcy, most or all of your debts will be erased.
This happens after your assets are divided amongst your creditors. This is possible, through bankruptcy, even if your assets don't pay all your debts.
This procedure is known as liquidation, or Chapter Seven (7) bankruptcy. Chapter 7 bankruptcy is the most popular type of bankruptcy. A "trustee" or government worker handles all the administrative and supervisory duties of the bankruptcy proceedings.
Chapter 11, 12, or 13 Bankruptcy provide rehab to your business, and choice of using future earnings to pay lenders. Once you begin the bankruptcy proceedings, creditors can no longer collect on your debts.
Also, you will not be able to transfer any assets that are part of the estate (so, forget about hiding your savings account or gold coin collection with a trusted relative or friend!) Further, transferring ownership of assets prior to filing bankruptcy typically does not work, and many are invalidated.
Recently, the U.S. Supreme Court decided that retirement saving accounts do not have to be included in your liquidation.
Bankruptcy and your credit reports - regardless of which bankruptcy you choose, it will typically remain on your credit reports for 7 or 10 years. Filing for bankruptcy frees you from your existing creditors, but not from any future creditors.
If you do decide to file bankruptcy, it will narrow your options. Good credit is possible to restore, but it will take some time and considerable patience.
Things to remember:
1. Any bad credit item can potentially be removed from your credit report.
2. New, current good credit will cause your score to improve.
3. Old, derogatory credit falling off your report will also boost your score over time.
4. You must monitor your credit reports regularly - and dispute questionable derogatory marks such as charge offs, collection items, and late payments. - 16036
About the Author:
For a free credit consultation call 1-866-246-7311. Of for more information if you are Considering Bankruptcy visit us. Or for info about how to remove bad credit from debt collectors such as LVNV Funding.
