Should I File For Bankruptcy,

When you are having trouble paying your bills, it is easy to feel overwhelmed. You've thought about bankruptcy but you've overheard awful things about what it can do to your credit and your future. All you really want is a way to get out from beneath your debt and move on with your life. You possibly have creditors calling and sending frightening letters demanding payment. It can reach a point where you are scared to pick up the phone or check your mail.

The truth is that filing bankruptcy is not a tragic ending but a new beginning and getting a fresh start without the weight of extreme debt holding you back. Bankruptcy is about starting over. Individuals often become overwhelmed with unexpected interest credit card debt that is tough to manage. An unpredicted illness can also lead to large medical bills that are difficult to repay.

Or an unpredicted decrease in income can lead to large credit card debt that you are unable to pay. Many people end up filing for bankruptcy due to situations that were not in their control. People try to escape bankruptcy but they dont realize that it can actually hurt them in many situations. If you are thinking about filing bankruptcy, you should look into all the options available to you and get the help you need to make a smart choice.

Things change in life and sporadically we face hard times. All types of bankruptcy are intended to give you the new start you deserve and allow you to take control of your financial position by living your life debt free. The credit card business is making billions of dollars off high interest credit card debt.

The credit card business also creates many complications for customers by repeatedly sending them additional credit cards with higher limits. There are several different choices available to clients seeking debt relief. Bankruptcy law can be very multipart. You should take the time to comprehend all your choices before you make a decision and find the path that would be best for you.

Definitely do some research on all the pros and cons of bankruptcy. You should also discuss alternatives to bankruptcy if you decide that another course of action would better fit your wishes. • Are you behind on car payments, • Are you behind on your house payments, • Is your house facing foreclosure,

• Are you using one credit card to pay another credit card, • Are they threatening to repossess your car, • Are you being sued by a creditor, • Are you worried your paychecks are going to be garnished, • Are you worried that creditors will seize your bank account or your tax refund,

• Do you want a fresh start, • Do you want to start a new life, Do I Qualify for Bankruptcy, You first must take a financial counseling course that is approved by the court. Is your current monthly income more than the median income, • If the answer is yes then you will need to file a chapter 13 bankruptcy.

• If your answer is no then you will need to file a chapter 7 bankruptcy. In both cases you must take an approved Credit Counseling Course to get a discharge from your bankruptcy. When the above complications are consistent occurrences, you'll want to acquire more information about what filing a Bankruptcy can do to help you. There are bankruptcy laws intended to help you; seeking expert advice from bankruptcy attorneys will help.

You could even lose your home or have your car repossessed. Also read: What’s the best way to give kids allowance, Many creditors are willing to work with borrowers before they get to that point. If your children are at risk of defaulting, they should try to work out an alternative solution with the creditor. Loans and credit cards aren’t free money. Frivolously taking out loans and opening credit cards you can’t afford can lead to crippling debt, poor credit, and a lifetime of financial woes. Teach your kids that loans and credit cards are useful tools that must be managed responsibly. You should never buy or borrow when you can’t afford it.

Your payment history impacts your credit score than any other factor - it's 35% of your score to be exact. Since payment history is such a large part of your credit score, having several past due accounts on your credit report will significantly hurt your score. Taking care of these is crucial to credit repair. Get current on accounts that are past due, but not yet charged-off.

A charge-off is one of the worst account statuses and happens once your payment is 180 days past due. Accounts that are delinquent but less than 180 days past due can be saved from charged-off if you pay the total amount that's past due. Beware, the further behind you are, the higher your catch up payment will be. Contact your creditor soon to figure out what you can do to get back current. They may be willing to waive some of the late penalties or spread the past due balance over few payments.

Let them know you're anxious to avoid charge-off, but need some help. Your creditor may even be willing to re-age your account to show your payments as current rather than delinquent, but you'll have to actually talk to your creditors to negotiate. Pay accounts that are already charged-off. You're still responsible for a charged-off balance. As they get older, charge-offs hurt your credit score less, however, the outstanding balance will make it hard - and sometimes impossible - to get approved for new credit and loans. Part of your credit repair must include paying charge-offs.