Being unable to sleep at night because your finances are keeping you awake is no way to live. You do have options to help you get out of the financial crisis. You deserve to live a life without worrying about creditors harassing you. Bankruptcy is one option that you might exercise. Consider these points before making your decision.
#1: Bankruptcy isn't only for irresponsible people
Some people think that bankruptcy is only for irresponsible people. Many women who file for bankruptcy are in a financial bind because of factors they can't control. Medical bills are one common reason a woman might need to file for bankruptcy. Job loss is another common reason.
#2: An automatic stay can stop your creditors
Creditor calls and mail don't have to ruin your day. Filing bankruptcy issues an automatic stay. This prevents creditors from being able to contact you to collect a debt.
#3: Not all bankruptcies are the same
There are two primary forms of personal bankruptcy - Chapter 7 and Chapter 13. These are very different. In Chapter 7, the court liquidates your assets to pay off as much of the debt as possible. In Chapter 13, you repay the debts on a structured plan.
#4: You might not have to part with all your assets
Assets are divided between exempt and non-exempt assets. Exempt assets, which can include a single vehicle and certain other assets, aren't part of the bankruptcy. Non-exempt assets, which can include second vehicles and high-value items, become part of the bankruptcy case.
#5: Bankruptcy doesn't affect some debts
You can't discharge certain debts in bankruptcy. Child support, alimony and tax debts aren't dischargeable in a bankruptcy. Be sure that you understand exactly what debts are included in bankruptcy before you file the paperwork.
#6: Recovering from bankruptcy is possible
Bankruptcy does affect your credit. However, this isn't a permanent situation. You can recover from bankruptcy and work to rebuild your credit. This might take some time, but it is possible. Be careful when choosing a credit rebuilding plan. You need to be able to repay what you borrow on time so you don't hurt your credit.
#7: Education requirements apply
You must go through specific education courses when you file for bankruptcy. Time limits apply to these classes, so be sure you understand which course you must take when. You will also have to go through credit counseling. When you file for Chapter 7 bankruptcy, you must prove that you went through credit counseling within the past 180 days.