Bankruptcy is often seen as a borrowers' last resort when it comes to permanently addressing debt issues. However, prior to considering one of the bankruptcy's chapters, many of those individuals try to come up with and apply debt-reduction strategies that are often costly in the long run. A mere bankruptcy filing removes all debts instantaneously, and protects from creditors' harassment. There's no other debt relief program that offers borrowers better benefits. This article lists two errors you must never make if you've decided to file for a bankruptcy chapter.
In a dire financial situation, it may seem like the best option to walk away from your home if the foreclosure process has begun. But before you make a decision, you need to understand the true consequences of foreclosure.
A foreclosure on your credit report can drop your credit rating by as much as 200 to 300 points in some cases. A fabulous credit rating of 760, dropped to 560 or below, makes buying a home, leasing a vehicle, or even getting certain jobs a challenge.
If you are having some type of financial difficulty and find that you need to take some measures in order to get yourself back on financial track, you may consider filing for bankruptcy. There are other options as well if you don't have severe financial issues, like debt consolidation or credit counseling, but if your situation is pretty bleak and you find yourself struggling to pay the bills, bankruptcy may the the answer.
Making the decision to declare bankruptcy usually comes after a lot soul-searching and hard decisions. Many people may offer opinions and advice - solicited or unsolicited - about the decision and the process. But some of that advice could not only make your situation harder but also may put your bankruptcy itself in jeopardy. Here are five pieces of bad advice to avoid during this time.
"Wait a Little Longer."
No, filing for bankruptcy is not an easy thing for a lot of people, no matter what chapter they are filing. However, it might just be the thing that you need to do in order to stay afloat financially and to be able to move on with your life. Of course, you want to make sure that you are not moving too fast with this legal process either. Therefore, take a little bit to think about the following signs that you are indeed ready to file for Chapter 7 bankruptcy.