Personal - What to Expect When Filing
First, understand that filing bankruptcy should be a last resort if
you have borrowed money and have absolutely no way or repaying it.
Filing for bankruptcy will have a negative effect on your credit history
for 10 years or longer and may also adversely impacts your quality of
life.
If you do declare bankruptcy, here are some things to expect. First,
you will need to be prepared to explain to a bankruptcy judge or trustee
how you got yourself into such a financial pickle. You will be asked
some very tough questions and need to be ready with good answers. It
will not be an easy or fun task.
The only credit cards you will probably be allowed to keep are those
that were completely paid off before you declared bankruptcy. You will
most likely lose all others.
Once you file for bankruptcy, you will have trouble getting a
mortgage, a loan, new credit cards, life insurance and even some jobs.
This is because there are employers who are skittish about hiring people
who have filed for bankruptcy as they feel it demonstrates a lack of
restraint or self-discipline.
Some of your debts will not be discharged. This includes child
support, student loans and back taxes. So if you think filing for
bankruptcy will relieve you of that $12,000 you owe Uncle Sam, think
again.
Keep in mind that a bankruptcy will stay on your credit report for at
least 10 years. This means that if you’re 35, you’ll be 45 before you
can apply for a credit card, a mortgage, a loan or a job without the
potential lender or employer seeing that you were once bankrupt.
The good news
Despite what you may have been told, it is possible to get a loan
after filing for bankruptcy. It is called a bankruptcy loan and its
purpose is to help you get back on your feet and reestablish your
finances.
A bankruptcy loan is usually available only after your creditors have
been paid and your bankruptcy dismissed. If you filed a Chapter 13
(reorganization) bankruptcy, your creditors must be paid in full before
you apply for a large loan. And if you filed a Chapter 7 bankruptcy, you
must wait at least two years after the bankruptcy to apply.
The best way is to prove to potential creditors that you are no
longer a bad risk is by paying all your bills on time, and showing that
you can now handle a credit card. Once you have a track record for
paying your bills on time, and have successfully maintained a credit
card, you can ask your creditors for reference letters to prove to
potential lenders that you have become credit worthy.
You should also know that there are lenders out there who will offer
you a loan while you are still in bankruptcy as a way of paying off your
creditors. Don’t be lured into this. It usually just paves the way for
further disaster as you are simply adding debt to debt. As a wise man
once said, you just can’t borrow your way out of debt.
Going through bankruptcy can be a painful and embarrassing
experience. Be sure you consider all possible alternatives before
filing. You might find that bankruptcy is easy to get into but very,
very difficult to get out of.
Here's a good idea. If you're looking for a great place
to vacation, choose Denver. Denver is pretty unique in
that it offers the best of two worlds -- the fun things
to do and see that you find only in a big, sophisticated
city, and the breathtaking scenery, unforgettable vistas
and amazing wildlife you find only in our nearby Rocky
Mountains. To learn more about the best Denver vacation,
just go to Just go to
http://www.best-denver-vacation.comDouglas Hanna
has lived in the Denver area for nearly 35 years and is
an expert on both Denver and Colorado. He is also the
author of more than 120 articles on Denver and Internet
marketing.
Article Source:
http://EzineArticles.com/?expert=Douglas_Hanna |
|
