Keep in mind that bankruptcy is not appropriate for minor amounts of debt, nor will it eliminate all of your debt. Bankruptcy is serious and should be a debtor's last resort after all other alternatives for debt relief have failed.
While bankruptcy is typically regarded negatively, it can be advantageous for a debtor. You may not be aware that declaring bankruptcy stops a foreclosure on your home, can prevent the repossession of your vehicle, and prevents bill collectors from contacting you. Also, the majority of those who file for bankruptcy are able to retain their home and vehicle.
If you are contemplating bankruptcy, you may find it intriguing to know that there are new bankruptcy laws that appear to be more helpful than the previous ones. Also, if you are married but the majority of your debt is under only one of your names, you can file bankruptcy individually.
Negative effects of declaring bankruptcy include filing a petition with a judge and bringing the matter to court. Not all debts are discharged, and the court will determine the amount you must repay. If you are a college graduate or have neglected to pay your taxes, you must be aware that filing for bankruptcy will not eliminate your student loans or tax debt. While a bankruptcy will not permanently ruin your credit, it can lower your score by 300 points and will remain on your credit report for 10 years.
You must also meet with credit counselors and attend a class on money management.""
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