If you have excessive debt and are thinking about declaring bankruptcy you need to know the facts.
After reading this article you will know the basics that can help you decide if filing for bankruptcy is in your future or not.
Keep in mind bankruptcy is not for small amounts of debt and it won't eliminate every dollar of your debt.
Bankruptcy is serious and should be a debtors last resort after all other debt relief options have failed.
While bankruptcy tends to be viewed as negative, it can be a good thing for a debtor.
Some positive things that you may not know about declaring bankruptcy are that it stops a foreclosure on your house, can stop repossession of your car, and it stops bill collectors from calling you.
Also, most people that file for bankruptcy do get to keep their home and car.
Things that may be a little more interesting to you if you are thinking about declaring bankruptcy are that there are new bankruptcy laws that seem to be more helpful than the previous ones.
Also, if you are married, but the debt it mostly under only one of your names, you can individually file for bankruptcy.
Negative effects of declaring bankruptcy are that you have to petition for bankruptcy with a judge and the case goes into court.
Not all debts are forgiven and the court will determine how much you have to pay back.
If you are a college graduate or slacked on paying taxes it is important to understand that student loans and tax debt are not eliminated if you declare bankruptcy.
While, a bankruptcy won't ruin your credit forever, it can lower your credit score 300 points and bankruptcy will show up on your credit report for 10 years.
You will also have to meet with credit counselors and attend money management class.