While bankruptcy may seem like a good notion, there is a great deal more to it than bankruptcy lawyers and companies would have you believe. However, before we discuss why bankruptcy may not be your best option, you must acknowledge that it is likely not your responsibility that you are in debt to begin with. When you charged purchases to your credit card or took out personal loans, you intended to repay the funds. Perhaps you experienced an unforeseen setback that prevented you from repaying your debt, or your income may have been significantly reduced. Regardless of how you came into this situation, the time has come to take action.
If you can repay your debts in a reasonable amount of time, you should not file for bankruptcy. To determine if this is possible, you must create a list of all your debts and calculate the monthly payment required to pay them off. Determine how long it will take if you make the minimum monthly payment. Remember that you will pay off your debt much faster if you can afford to pay even a small amount more than the minimum. Don't forget, however, that your income must be greater than your debt payments after deducting your necessary living expenses. When you do the math, does it work out to be less than five years? If it works out in less than five years, you should be fine and should not contemplate filing for bankruptcy.
If you believe that filing for bankruptcy is your only option, you must understand that not all debts will be eliminated. The two notable exceptions are any child support you owe and any student loans you have. These debts cannot be eliminated by filing for bankruptcy. Consider this before filing for bankruptcy.
After a bankruptcy, obtaining credit will be difficult for a decade. In fact, obtaining any form of credit that requires a credit check, such as a new house or car, will be challenging. As your bankruptcy will remain on your credit report for ten years, creditors will be hesitant to take a chance on you.
In conclusion, if you believe that bankruptcy is an easy route out of debt, you must reconsider. ""I'm not saying you shouldn't file for bankruptcy, but you should be aware of the negatives as well as the benefits.""
" - https://www.affordablecebu.com/