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Why Bankruptcy Should Never Be Filed

Why Bankruptcy Should Never Be Filed
"""You are familiar with the sensation of cringing when the phone calls. You gaze at it with the hope that it is not a bill collector. You wish that it will be someone who offers you a job. You carefully answer the phone, hoping and praying that it's not another creditor, but it is.""I'm apologetic, but I'm not working at the moment. I'll...I'll do my best to send you a payment as quickly as possible."" You end up while crying, glancing at the past due notices and pondering the advertisement you saw on television once more. Bankruptcy. You recoil at the thought, but you ask yourself, What choice do I have? If I do not file for bankruptcy, I will lose everything. This is the time to take a moment to reflect. Consider whether this is the finest option.

Insolvency is an extreme response to a situation that is manageable if you know where to turn. Although it may be alluring to declare bankruptcy and walk away from all your debts, there are numerous compelling reasons why you should never do so.

For instance, did you realize that a bankruptcy remains on your credit report for ten years? In addition to the bankruptcy being listed, it affects virtually every aspect of your existence. Nowadays, your credit report will be checked for a variety of purposes, including obtaining a car loan, a job, or a bank account. For many years, having a bankruptcy on your credit report will make you appear to be a dreadful risk. People will question your credibility. Will you abandon your responsibilities the same way you abandoned your debts?

There are additional negative aspects of bankruptcy. In a bankruptcy, you must identify every asset you possess. Your grandmother left you her exquisite china for special occasions? It is permissible for a bankruptcy court to confiscate and auction it off to pay off your debts. Your transportation is likewise vulnerable. In fact, only the essentials are permitted to be retained in a bankruptcy. You will not be left without a place to sleep, but anything that is a luxury item (i.e., beyond the basic necessities of living) will be seized and sold to pay off your debts. Note that we are not claiming that it will occur, only that it is possible.

In a number of jurisdictions, filing for bankruptcy can affect your home. If you own your own property and have accumulated equity over the years, it can be repossessed and you may be forced to live in a rented apartment. That is, if you could, you would reside in a rented residence. Due to your impending bankruptcy, no landlord is likely to rent to you, leaving you dependent on inexpensive lodgings or the generosity of friends and family. Many states will (reluctantly) force you and your family to leave your home because it must be sold to pay your debts. While some states (notably Florida) allow you to remain in your home even after filing for bankruptcy, the majority will (reluctantly) force you and your family to leave because the home must be sold to pay your debts.

Lastly, there is an absurdity to the current bankruptcy code. Once upon a time, you could simply declare bankruptcy and start your life over. You would erase your debts and never fret about them again. Certainly, you would lose everything, which is not a luxury, but at least you would regain your life.

However, during his first tenure in office, President Bush signed a bill that changed the bankruptcy rules. In a cruel irony, it has become significantly more difficult for you to declare bankruptcy and merely leave. Instead, everyone must now undergo debt counseling and investigate Chapter 13 of the Bankruptcy Code, which allows you to arrange debt repayment. Essentially, this means that if you declare bankruptcy, you may still be required to repay your obligations, despite having a bankruptcy on your credit report.

There is a superior method. You will see that you and your children have a brighter future if you seek debt counseling. You have an obligation to make the contact today.""

" - https://www.affordablecebu.com/
 

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"Why Bankruptcy Should Never Be Filed" was written by Mary under the Finance / Wealth category. It has been read 160 times and generated 1 comments. The article was created on and updated on 03 June 2023.
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