Actions

  Print Article
  BookMark Article

Author Login    Author Login

Important
Existing members will have to use the lost password facility to get new username and new password

Welcome Guest! Please login or create an account.

Username:

Password:



If you do not have an account yet, you can register ( Here ), or you may retrieve a lost user/pass ( Here ).

Navigation    Navigation

   10 newest articles RSS

Author Highlights    Featured Author

nirvana canda
Vancouver

View My Bio & Articles


Don Luttrull.
Will Clayton

View My Bio & Articles


Tony Nu
Hanoi

View My Bio & Articles


Other Websites    Websites of Interest

Avoiding Bankruptcy By Getting Bankruptcy Debt Relief

Author : Ask Bill


Filing for bankruptcy comes with a stigma that may stick with you for years even after you have been discharged by the court. This is why most experts would advice you to avoid having to file for bankruptcy at all costs and you may only file for bankruptcy if any other bankruptcy debt relief does not work for your particular financial situation. However, nobody knows your financial situation more than you do. So before you make any decision whether to go ahead and file for bankruptcy or to consider other alternative bankruptcy debt relief programs you might want to brush up a little bit on your knowledge of bankruptcy and debt settlements.
One of the many reasons debt reduction programs are preferred over bankruptcy is probably because of the major negative impact a bankruptcy filing would have on your credit score. Bankruptcy would decrease your credit score by 200 to 250 points and the entry would stay in your credit report for about ten years depending on the type of bankruptcy you file. If you file a Chapter 7 bankruptcy there is a high chance of you losing your assets as some of them may be sold to repay your debts. This, however, differs in different States. So you may want to check with your State’s list. You might also want to debunk the widely spread myth that insolvency can help get rid of all your debts. You may want to know and understand that there are debts that you simply cannot get rid of by filing for bankruptcy such as back taxes, student loans, child support or alimony.
There are ways for you to get your debt payments back on track without having to resort to filing for bankruptcy. Of course you might first need to evaluate your financial situation and see if filing for bankruptcy is going to be worth it. This is especially important if you are trying to get rid of your student loan that cannot be discharged by filing for bankruptcy. So it is advisable that you check if your largest loan is dischargeable by means of bankruptcy filing or otherwise. For example if you owe a total of $100,000, with your student loan making up to 75% of your total loan, you might only be able to have $25,000 of your entire loan to be “forgiven” as the $75,000 student loan cannot be discharged by filing for bankruptcy. In that situation, filing for bankruptcy might not actually be worth it.
One step you might want to take rather seriously is to figure out how to budget your expenses and to learn to live on cash rather than charging all your expenses to your credit card. In extreme cases it probably would be a good thing if you are to cut up all your credit cards and learn to live within your means only with no splurges on luxury items or branded goods. Once you have worked out a budget, it might be a good idea for you to actually stick to it and be strict with yourself. Living mainly on cash may not be so bad once you get used to it.
One of the things you might not want to do is to run away from your creditors. Man up and contact your creditors and show them your plan or payment structure that you have come up with in order to be able to pay them what you owe. Inform them of your strategy such as getting some debt relief help and show them that you are serious about it and that you are determined to pay off all your debts to them. You might be able to negotiate a payment schedule that is less than what you actually owe if you play your cards right.
There are many other ways for you to avoid having to file for bankruptcy and look for alternatives that are going to have the minimum risk on your financial health in the long run. Although filing for bankruptcy might be the easy way out, it is always wiser for you to assume responsibility of your own debts and try to figure out ways to pay back your debts and get help if you need it.


Author's Resource Box

http://www.bills.com/debt-relief-articles/
http://www.bills.com/debt_reduction_help/
http://www.freedomdebtrelief.com/

Article Source:
Articlebliss

Tags:   bankruptcy debt relief, debt reduction, debt relief

Author RSS Feed   Author RSS Feed     Category RSS Feed   Category RSS Feed


 

  Rate This Article
Badly Written Offensive Content Spam
Bad Author Links Mis-spellings Bad Formatting
Bad Author Photo Good Article!
 

 

 

 

Submitted : 2010-10-07    Word Count : 714    Times Viewed: 189