We live in an age of easy credit. OK, the banks and financial institutions have caught a cold in recent years making obtaining credit harder to obtain, but for many people a worldwide recession combined with high personal borrowings and credit card debt, has resulted in real financial difficulty.
Credit cards have played a major role in this. We all know how easy it is to live beyond one’s means by supplementing our spending with credit card debt. The problem is that it has to be paid at some stage, and for some, just the monthly interest is more than they can afford.
Some short term relief can be found using balance transfers to cards with lower interst rates, but a long term solution has to be arrived at eventually.
For many, the chance of wiping away this debt and starting again with a clean financial slate is very appealing. Declaring yourself bankrupt can do this, but should only be considered after some serious thought as to whether or not the situation can be saved, and should be only ever be a last resort.
You also need to be wary of the plethora of companies that have appeared in recent months to “assist” with bankruptcy.
The most sensible thing to do, regardless of cost, is to hire a specialist bankruptcy lawyer. Be aware that they should have experience of the bankruptcy laws as they appear in your actual state. A specialist lawyer will be able to advise the best course for you to follow.
Before declaring yourself bankrupt, you need to check that you are eligible. You are ineligible if:
If in the last 180 days you have, of your own accord, dismissed your own bankruptcy case you are ineligible.
If you have previously declared yourself bankrupt and received the discharge within the last seven years you are ineligible.
You are ineligible to file bankruptcy if in the last 180 days you have had a petition dismissed because you failed to follow the Bankruptcy Code.
If none of these points apply to you, declaring yourself bankrupt is open to you.
Your lawyer will advise you of the best type of bankruptcy for you to file under. There are several “chapters” or types of bankruptcy, the most common being chapter 7 and chapter 13.
Chapter 7 bankruptcy is often regarded as the “chapter of choice” as you are no longer responsible for any outstanding debt (there are some exceptions), after your assets have been sold and the proceeds distributed amongst your creditors, giving you a completerly fresh start. Chapter 13 bankruptcy laws allow you to keep your assets and pay off your creditors over 3 – 5 years.
For additiaboutal useful informatiabout about declaring yourself bankrupt, including informatiabout about angles to caboutsider before filing and informatiabout about lawyers, visit www.declaringyourselfbankrupt.net. Get a totally unique version of this article from our article submission service
