Deciding to file bankruptcy will be one of hardest decisions you will ever have to make. Probably, one decision you thought you may never have to make. The reality is, in America thousands of people file bankruptcy every week. That’s an incredible amount of society in financial burden. No one wants to file bankruptcy, yet it may be the best decision to a fresh start. Nevertheless, deciding to file bankruptcy should be your last resort.
A Chapter 7 Bankruptcy also referred to as straight bankruptcy will stay on your credit report for 10 years. Before deciding to file bankruptcy, consider all of your alternatives. Most professional opinions state that you should only file bankruptcy after considering all of your alternatives.
Alternatives include finding a suitable budget, which would allow you to catch up on previous and current debt; debt consolidation, which a professional consultant will assist you with options and alternatives to paying your previous and current debts; and debt consolidation loans, which you can receive to pay off your creditors; however, not everyone has these options.
In order to get a debt consolidation loan, you will need a fare standard of credit. However, if you are considering bankruptcy, your credit may not be up to par. Debt consolidation may not be an option either. For one, debt consolidation in all reality is somewhat just as devastating to your credit as a bankruptcy and it may take you 10 years to pay off your creditor. Not only do you have to pay your creditor monthly, but you will need to pay the debt consolidation provider, as well.
Last, but not least, a budget is easier said then done. Before even considering bankruptcy, you probably tried once or twice to budget your finances. When your debt exceeds 60-70 percent of your income, a budget just may not work. However, explore all of your alternatives and maybe seek out professional consultation. Then and only then, if none of these alternatives rate suitable, should you decide to file bankruptcy.
Ultimately, filing a Chapter 7 Bankruptcy will be a decision only you can make. Conversely, filing a Chapter 7 Bankruptcy will give you a clean slate, giving you the opportunity of a fresh start in life. You will no longer have to deal with bothersome creditors and bill collectors contacting you daily. Nor will you have to feel the burden of limitation of money due to over exceeding bills. It is hard enough keeping up float with current bills.
Filing Chapter 7 Bankruptcy doesn’t have to be the end. Instead, think of it as a new beginning.