The topic of bankruptcy can be touchy, and many are ashamed to discuss it. As financial woes continue to grow, many look to bankruptcy as a way to ease their money burdens. However, due to the common myths associated with bankruptcy, many wait far too long before considering it an option. Individuals who are struggling to get out of a financial hole should definitely research the options that bankruptcy can provide, before it's too late.
Many believe that their credit will be ruined if they file for bankruptcy. This isn't necessarily true. When your credit score begins to decline due to unpaid debts and bills sent to collection agencies, that can be more damaging than a bankruptcy. At this point, filing for bankruptcy is usually a better long-term option and can be the first step in clearing up your credit and rebuilding a positive financial standing.
When you file a Chapter 13 bankruptcy, it allows you to work with your creditors to establish new payment terms. You will be able to meet your financial obligations and begin working towards a debt-free future. Being able to pay your debts instead of having them thrown out will make you look much better in the future.
Many people worry about filing for bankruptcy because they believe they will lose all of their savings. This could be true for some, but with shades of gray. Trying to hold onto a large sum of cash you've been saving will prove futile if you file a bankruptcy, and in any case, that money should have been used to pay down debts prior. Many accounts are exempt from bankruptcy, including retirement accounts, deferred compensation plans and education savings intended for children or grandchildren. Please note that you will not lose all of your assets during a bankruptcy and certain assets won't even be considered. If you are unsure or worried about certain savings accounts, a bankruptcy lawyer can answer those questions.
One topic that is a bit shaky where bankruptcy is concerned, is foreclosure. This is somewhat of a slippery slope and can go either way, depending on your individual circumstances. Depending on your individual case, foreclosure can be delayed or it can stopped; there's no way to know for sure. It is more important to focus on averting a foreclosure long before bankruptcy becomes an option. While Chapter 13 may not prevent a foreclosure, it is still an effective tool in helping to restructure your finances, and may save you from foreclosure. At the very least, it allows you to negotiate better terms with your lender while you continue making your mortgage payments.
Bankruptcy myths can oftentimes be dispelled simply by speaking with a professional. If you do all the necessary research, you may find a lot of your fears are assuaged, and you can begin the process of getting your life back in order.
Many believe that their credit will be ruined if they file for bankruptcy. This isn't necessarily true. When your credit score begins to decline due to unpaid debts and bills sent to collection agencies, that can be more damaging than a bankruptcy. At this point, filing for bankruptcy is usually a better long-term option and can be the first step in clearing up your credit and rebuilding a positive financial standing.
When you file a Chapter 13 bankruptcy, it allows you to work with your creditors to establish new payment terms. You will be able to meet your financial obligations and begin working towards a debt-free future. Being able to pay your debts instead of having them thrown out will make you look much better in the future.
Many people worry about filing for bankruptcy because they believe they will lose all of their savings. This could be true for some, but with shades of gray. Trying to hold onto a large sum of cash you've been saving will prove futile if you file a bankruptcy, and in any case, that money should have been used to pay down debts prior. Many accounts are exempt from bankruptcy, including retirement accounts, deferred compensation plans and education savings intended for children or grandchildren. Please note that you will not lose all of your assets during a bankruptcy and certain assets won't even be considered. If you are unsure or worried about certain savings accounts, a bankruptcy lawyer can answer those questions.
One topic that is a bit shaky where bankruptcy is concerned, is foreclosure. This is somewhat of a slippery slope and can go either way, depending on your individual circumstances. Depending on your individual case, foreclosure can be delayed or it can stopped; there's no way to know for sure. It is more important to focus on averting a foreclosure long before bankruptcy becomes an option. While Chapter 13 may not prevent a foreclosure, it is still an effective tool in helping to restructure your finances, and may save you from foreclosure. At the very least, it allows you to negotiate better terms with your lender while you continue making your mortgage payments.
Bankruptcy myths can oftentimes be dispelled simply by speaking with a professional. If you do all the necessary research, you may find a lot of your fears are assuaged, and you can begin the process of getting your life back in order.
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