Can Bankruptcy Be a Chance for a New Life?

Can Bankruptcy Be a Chance for a New Life?

Yes, bankruptcy has been termed as a type of failure by one and all. Do you also agree with the same thought? Well, an experienced bankruptcy lawyer will explain to you how to secure your financial well-being by using bankruptcy as a financial tool. Surprised! So, if you are not aware of the rules and regulations, then you must ask your financial lawyer to explain the different forms and alternatives of bankruptcy. Agreed, that sometimes your financial investments can go wrong and you are not able to meet your home mortgage payments or pay your utility bills, medical bills and credit card bills. Fret not! Before your financial stability spirals out of control, speak to an experienced bankruptcy lawyer, who will explain how to reverse the downward spiral with the help of the Bankruptcy chapter 7.

Advantages of Declaring Bankruptcy under Chapter 7

  • Yes, declaring yourself bankrupt is a very difficult option, since it affects your reputation, your creditability and your self-image. But, is it the best option for you? Agreed, that bankruptcy stays on your record for years, but this trade-off leaves a lasting mark against your credit and allows for freedom from most debts. It is more difficult to explain to a future lender about your missed and default debt payments and all the lawsuits against you, than bankruptcy.

  • After you file for bankruptcy chapter 7, most state exemptions allow you to keep a limited amount of your property and you also get to keep your salary or wages that you earn.

  • You will definitely lose all your credit cards, but don’t you think that your credit cards were the main reason for the mess you are in? Within one to three years of filing bankruptcy you will be able to get new lines of credit, but yes, at a much higher rate of interest.

  • Once you file for bankruptcy, all those harassing calls from your lenders will have to stop because a stay order requires all the creditors to stop their collection efforts until further notice. But, you still need to pay your mortgages and other secured debts. All the debts that you list at the time of filing for bankruptcy are erased and any money you earn or debt you incur after filing for bankruptcy chapter 7 are not subject to proceedings.

Consequences

Yes, filing for bankruptcy is not an easy way out; it does stay on your credit report for 10 years. You may find that lenders are shying away from lending you money and it will become very difficult for you to get credit to move forward in life. So, be aware of the consequences and always try and live within your means.

Hassan is a Blogger, Author, Entrepreneur and the Administrator of OnzineArticles.com. He heads Burgeoning Technologies, a Web and IT Company and manages several other blogs and websites. He can be followed on , Twitter and Facebook.

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