Filing personal bankruptcy is not something to be taken lightly; it is a very personal decision. Filing for personal bankruptcy can be very bad for your credit score. You need to think about whether the hit to your credit score is worth it to take care of your growing debt problems before they get even worse. If you ignore your debt and do not deal with it, it will only become a bigger problem.
Personal bankruptcy refers to an individual filing for bankruptcy versus a company. There is no one way that personal bankruptcy is structured; it depends on the person and his circumstances. There are regulations and laws, though, that govern the things that can and cannot be done in personal bankruptcy. Personal bankruptcy can be in the form of Chapter 7 or chapter 13 personal bankruptcy. A Chapter 7 bankruptcy refers to liquidation and a Chapter 13 bankruptcy refers to a restructuring of the debt.
Filing personal bankruptcy will help people deal with a serious debt problem but it cannot take care of all debts because of laws and regulations. There are certain debts exempt from personal bankruptcy including child support, criminal fines and payments that come from a court order.
Whether or not you can include your tax debt depends on what your attorney can work out with the IRS. If you acquire more debt after filing personal bankruptcy that is not going to be included in any settlement. If you agreed to use collateral to secure a loan, the creditor can take your collateral instead of agreeing to payments.
There are a lot of benefits for you financially if you file personal bankruptcy. Getting rid of your debt or even having a reasonable payment plan in place to pay it off will make you feel so much better and relieve a lot of your stress. You will feel like you have had a huge load lifted off your shoulders.
Filing for personal bankruptcy can improve your financial situation in many ways. Declaring personal bankruptcy rids you of the obligation to pay back your debts. It is as if the debt never existed in the first place.
If you are close to losing your home or your car, you can possibly save them by filing personal bankruptcy. Your utilities that were turned off for non-payment can be restored as well once you file for bankruptcy. Your lawyers should be able to tell you all the ways that individual bankruptcy can help you in your life and get you as much relief as possible financially.
If you already have a bad credit history, filing personal bankruptcy may actually help your credit in the long run. When you file personal bankruptcy, it gives you a clean slate as far as your credit goes. The debts you had are wiped out. You can work on improving your credit after personal bankruptcy by paying all your bills on time, saving money and spending responsibly.
When you file for personal bankruptcy, it remains on your credit report for ten years. Chapter 7 bankruptcy cannot be filed again for four years and Chapter 13 bankruptcy cannot be filed again for 8 years. You need to look at the short term and long term disadvantages and advantages when considering filing personal bankruptcy. If you do it right and use a good attorney, it can help you turn over a new leaf with your finances.