{"id":5029,"date":"2008-09-17T09:35:41","date_gmt":"2008-09-17T14:35:41","guid":{"rendered":"http:\/\/magic1host.com\/blog\/2008\/09\/17\/bankruptcy-what-to-consider-before-filing\/"},"modified":"2008-09-17T09:35:41","modified_gmt":"2008-09-17T14:35:41","slug":"bankruptcy-what-to-consider-before-filing","status":"publish","type":"post","link":"https:\/\/magic1host.com\/blog\/?p=5029","title":{"rendered":"Bankruptcy – What To Consider Before Filing"},"content":{"rendered":"
by William Blake<\/div>\n

Bankruptcy is a means to get out of debt. Some feel that it is a quick escape from mounding debt, and they make it their number one option. However, bankruptcy is no little thing and should be weighed carefully. <\/p>\n

Understand that filing bankruptcy means you will pay a very small percentage or nothing at all toward the debts you owe. Your creditors clearly do not want that and they do have a say. That means they and the courts will require detailed explanation for why you can not pay and this can get personal. Therefore, while the act of filing for bankruptcy is relatively painless, the entire process is far from that. <\/p>\n

If you are awarded bankruptcy, there will be some repercussions that will affect you for years to come, and these should be carefully considered. <\/p>\n

You will no longer be eligible for any decent credit<\/a>. That means that if you are able to receive a significant loan, for instance a home loan, you will be subject to extremely high interest rates which can lead you right back into financial ruin. Any credit cards that you were unable to pay will be lost, and other companies may decide that you are no longer a good risk and terminate your credit with them. <\/p>\n

Also, not all debts are covered even by a bankruptcy filing. Student loans, back taxes within the past three years and select other debts are generally exempt from bankruptcy protection.<\/p>\n

A bankruptcy stays on your credit for ten years, and it is very difficult to rebuild good credit afterward. Though your FICO scores are very important, nothing is looked upon more seriously and has a more negative effect on your credit than bankruptcy. <\/p>\n

Beyond the credit impact, you may actually be required to forfeit real assets – a boat, expensive jewelry and other items – depending on when they were acquired. Most states make an exception for the primary residence and your auto. If you have secondary property, that may not be protected, however.<\/p>\n

Finally, of course, the bankruptcy procedure itself is not free. Courts always have required fees and if you use an attorney that too will cost you. That can add the final straw to an already very bad financial situation.<\/p>\n

There are some positives to bankruptcy as well. The debt collectors will stop calling once they receive word that you have filed bankruptcy. Also, you are protected from wage garnishment and from loosing your primary residence in foreclosure. If these things are eminent and you have run out of options, bankruptcy may give you a fresh start so that you can begin to rebuild your credit.<\/p>\n

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About the Author:<\/div>\n
Are you looking for help with reducing credit card debt<\/a>? Learn some simple techniques for starting to get your debt paid off today on the Debtopedia website. Visit http:\/\/www.debtopedia.com to get your free copy of my special report “Secrets Of Credit Card Debt” today.<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Bankruptcy is a means to get out of debt. Some feel that it is a quick escape from mounding debt, and they make it their number one option. However, bankruptcy is no little thing and should be weighed carefully.<\/p>\n","protected":false},"author":540,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[77],"class_list":["post-5029","post","type-post","status-publish","format-standard","hentry","category-business","tag-business"],"_links":{"self":[{"href":"https:\/\/magic1host.com\/blog\/index.php?rest_route=\/wp\/v2\/posts\/5029","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/magic1host.com\/blog\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/magic1host.com\/blog\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/magic1host.com\/blog\/index.php?rest_route=\/wp\/v2\/users\/540"}],"replies":[{"embeddable":true,"href":"https:\/\/magic1host.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=5029"}],"version-history":[{"count":0,"href":"https:\/\/magic1host.com\/blog\/index.php?rest_route=\/wp\/v2\/posts\/5029\/revisions"}],"wp:attachment":[{"href":"https:\/\/magic1host.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=5029"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/magic1host.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=5029"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/magic1host.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=5029"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}