Careful Consideration Must Be Used When Looking Into Filing Bankruptcy

Is filing bankruptcy the right choice for me? This is a question that many Americans have asked themselves lately. This is a question that should be answered only after all options are considered. The truth is, millions of Americans file bankruptcy every year to eliminate overwhelming debt. This is because filing bankruptcy can be the most effective means of eliminating unpayable debt all while being under the protection of the legal system that bankruptcy offers. There are certainly other ways of getting rid of debt but this should all be evaluated with the assistance of a financial professional. A good place to begin is credit counseling. They can help an individual decide if bankruptcy is the right choice or if another option such as debt consolidation would be a better choice. Another good starting point is to have a consultation with a bankruptcy attorney. Most bankruptcy attorneys offer a free initial consultation where they will look at the debtor's specific financial situation and determine if filing bankruptcy is the best decision. Many reputable law offices that handle bankruptcy also have financial professionals that can assist the individual in credit counseling and financial planning if bankruptcy is not an option. Either way the debtor can choose a path that will ultimately lead them to financial freedom. The bottom line is that you must take that first step to once again gain control of your life and finances. If it becomes evident that filing bankruptcy is in your future then just consider it a slight bump in the road in the journey of life. After it is all done and behind you it will only seem like a distant memory as you move forward to a successful financial future. We should all count our blessings that life here in the United States is considerably better than anywhere else in the world and we still have the ability to legally file bankruptcy to eliminate debt and gain a fresh start. Leaning on the strength of family and close friends throughout the bankruptcy process can be extremely beneficial since many people are at the end of their rope by the time they are ready to file and living with constant stress has become the norm. However, most individuals will say that they emerge from bankruptcy with a newfound sense of hope, relief, and even a little wiser about the pitfalls of easy credit in this consumer driven "buy now pay for it later" instant gratification society. As part of the filing process the individual must complete a credit counseling course as well as a financial management course which will equip them with valuable tools for future success as they move forward. Filing bankruptcy is not right for every individual, but it can be a life saver for those drowning in debt. Bankruptcy can allow an individual to live life once again without the constant stress and bombardment from aggressive debt collectors. Lose the hopelessness of un payable debt and regain control of your life by filing bankruptcy. The author started DebtFreeBankruptcyAttorney.Com which is a website that helps individuals with debt problems by putting them in touch with a local bankruptcy attorney that specializes in filing bankruptcy under Chapter 7 and Chapter 13 bankruptcy. Check our website for more answers to bankruptcy questions and ideas on how to have a debt free future.

Break the Chains of Debt by Filing Bankruptcy

Most Americans today are in some kind of rut. Whether it be addicted to television, the Internet, sports or even debt. Debt has become very addictive as many Americans continue to keep up with the Joneses. Around 40 years ago people used to save money and make purchases by using cash. When the credit industry started pushing out credit cards in the 1960s many Americans embraced them as if they were getting free money. This generation learned of the perils of debt quickly as they could not afford to keep paying on credit way beyond their income. In the old days, when a person was over extended, the creditor would cut up the card in front of the consumer and everyone else in the store. From what I understand, it was very humiliating and humbling for this generation that never had credit before in the past. Because of pride most of these people worked years to pay these debts back instead of filing bankruptcy. Back then, filing bankruptcy carried a mark of shame that no one wanted stamped on their forehead. Now that many generations have passed, credit is more American than apple pie. That is at least most people believe it is impossible to live without it. With this logic comes an added fear when debt becomes overwhelming and a bankruptcy filing is on the horizon. At some point in time, debt left unchecked will always outweigh one's income and cause mountains of stress and anxiety. In today's fast-moving economic world, the fear of losing credit causes tunnel vision for those considering filing bankruptcy. At first, a person will usually continue kicking the can down the road to keep their credit cards open. All it takes is something small like their car to break down and payments begin to get missed. This is the point in time when filing Chapter 7 bankruptcy starts to look real good. Nowadays, creditors have become very aggressive on their collection tactics. When someone doesn't have the money to give them, they have been known to demean the individual with threats of what will happen to them. This is the time they should be calling a bankruptcy attorney but usually hang on until they can no longer take the stress of the constant bombardment of creditors calls. Nothing is wrong with filing for bankruptcy. No one is perfect and everyone has made bad financial decisions in their past. The difference for some is their income does not allow them to make any financial mistakes and recover from them. People filing bankruptcy will no longer need to worry about creditors as the court puts a stop to all collection activity. This is the time when the family can get peace of mind knowing that all their debts will be wiped out in the end. In this day and age of families falling to divorce, husbands and wives need to stick together knowing that things will get better if they just give it enough time. Stress makes many people make rash and foolish decisions and that's why it's important when someone's finances start spiraling out of control to seek professional advice and break the chain of debt that is and will destroy their family. The author started DebtFreeBankruptcyAttorney.Com which is a website that helps individuals with debt problems by putting them in touch with a local bankruptcy attorney that specializes in filing bankruptcy under Chapter 7 and Chapter 13 bankruptcy. Check our website for more answers to bankruptcy questions and ideas on how to have a debt free future.

Bankruptcy - Is a Home Mortgage Possible?

Have you had a bankruptcy and don't know how it will affect you in regards to getting a mortgage loan? It may not be as bad as you think. You had a bankruptcy. Lots of people do and rebound from it. Here is some information to keep in mind when getting your mortgage after going through the process. You probably won't be able to get into a mortgage for at least two years after the bankruptcy has been discharged if you filed chapter 7. That is usually the waiting period lenders will impose before considering a loan. Once that time frame is up, there should be no issues getting financed. If you filed chapter 13 bankruptcy, the Federal Housing Administration will consider a loan in as little as one year. The important thing for a consumer to do is begin immediately re-establishing their credit and building their credit score. This can be done by paying rent and utility bills on time. Or, perhaps obtaining a secured credit card, a credit card where the balance is paid in by the cardholder to establish the account. You should, however expect to pay a higher interest rate. You will pay the higher rate, because you are a higher risk. Keep good records of all of the payments you have made since the discharge. If the bank sees that you have been on time with your payments and are current on your accounts, it may help to keep your interest rate on the lower side. Remember, it isn't just the bankruptcy that affects your ability to get the loan or the interest rate. Employment history, loan to value and down payment also are a factor in the loan decision. Securing the loan may be challenging. Stay positive, patient, and persistent. Lenders may want to do extensive digging into your financial records. Be as cooperative as possible. You don't have to stay with one lender. Shop around. Get advice from multiple sources. Talk to your local brick and mortar banker. Dealing with someone you have a relationship with is helpful. Talk to a broker. Brokers deal with many types of situations and may be able to steer you in a path you haven't thought of. Search online. There are many online companies that deal solely with helping people who have had bankruptcies obtain mortgages. Banks will consider anyone with a bankruptcy a high risk. High risk is just that, high risk. Not impossible. You can still get a mortgage. You may have to jump through more hoops. You may have to pay more interest (which is deductible on your taxes). But you can buy a house.