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by - Elizabeth Bean
No one wants to file for bankruptcy, but there are times when people have no other choice. Though filing bankruptcy is not something that everyone recommends, there are times that it is better than the alternatives. Once you have decided that consider credit counseling, debt consolidation, and debt settlement are not right for you, but you have to do something about your credit, you may have to file. However, though it can be painful, it is also a new beginning in many ways.
When filing bankruptcy, you have to realize that you are going to have to sell off some of your assets. There are some things that you will be able to keep, but the laws on this may vary from state to state, so you do have to talk with your lawyer about what you can keep and what must go. Most laws are on the federal level though, so there won’t be much difference. For the most part, you may be able to keep some home equity, your car (depending on value), and other things that you need to live. However, other things will have to go. These things will be sold to pay off your creditors. What can not be paid off will then be erased.
Though most companies will not fight bankruptcy, there are some that do. There are also some debts that are not forgiven when you are filing bankruptcy, so don’t think you can get rid of all of your debt by doing this. If you owe student loans, have alimony or child support payments, or owe taxes, they are not going to be forgiven. If you owe restitution from a drink driving accident, or you have criminal fines to pay, they will not be included in your bankruptcy claim either.
You also have to remember that filing bankruptcy means different things to different people. You will have the record of your bankruptcy on your credit file for up to ten years, and how each creditor in the future will view this will be up to them. Some know that you can not file again for a certain amount of years after your first filing, so they will extend you credit. Others may decide that you are too big of a risk and pass you by. Everyone survives afterwards though, and as long as you have learned good spending habits and have learned to avoid what landed you in bankruptcy in the first place, you should be much better off once it is all said and done.
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