If you have ideas of filing bankruptcy think twice . The rumors are that you will have the bankruptcy removed from your credit with in 7 years . Their is something you need to know most bankruptcies are paid with in 2-5 years meaning that 60% of all clients that file bankruptcy actually do so out of fear and wanting to make a fast move to remove the debt that is causing them problems. We understand that creditors maybe calling and that you may have a phone that rings 8-10 times a day but filing bankruptcy is not sometimes the right answer and you should only do so under extreme conditions . Please take a look at our bankruptcy check list so that you overstand under which conditions bankrupty should be a option .
1. You have exhausted all possible funds (No possible income for the next year or more).
2. Have a lien or possible court filing and precedings that you know without a shadow of a doubt have been filed against you and your possessions.
3. Have less than 40% of the revenue needed to pay the bankruptcy in full (excluding liquadated assets).
4. Believe it or not under new bankruptcy laws you may be still stuck with paying your creditors back depending on the size of the bankruptcy . Some file bankruptcy and are happy until they get the news that they have to still pay back a certain portion . This leaves some of the clients feeling hopeless as they now must pay back what they thought was a free debt and their credit is in the same still ruined .
5. You will lose your credit cards. It's highly likely that if you are considering filing for bankruptcy, it's credit cards that got you there, so the loss of your ability to “charge it” might not be a bad thing.You're not going to find it easy to get new cards for a long time and thus filing for bankruptcy will all but force you to be on a strictly cash basis. If your car breaks down, or some other unforeseen event occurs, you might find it difficult – or impossible – to be able to produce the cash necessary to deal with it. Although all Fools recommend having an emergency fund for such situations, it is likely that if you are at the point of bankruptcy that you do not. Regardless, the bankruptcy court will require you to use any money in your emergency fund to help settle your obligations. As such, spare cash will be sparse.
Bankruptcy is serious and you should take your time and know the facts before you do so as one of these options can heavily outweight all options and just one of the above is enough to put your world in a financial crisis when the right opportunity presents itself and you are not able to take full advantage . We have a free guaranteed credit program that takes a 3 step approach to your debt and analyses your debt . The majority of the bankruptcy companies overstep that as their job is just that to have you file bankruptcy under any conditions and do not take your personal health and true well being into factor. Our free sign up form will allow us to do this for you and it cost you absoluty nothing . We will respond with in 24 hours with a assigned credit counselor that will help you with all of your debt needs .
