Salient Points About Personal Bankruptcy

Download Salient Points About Personal Bankruptcy

Post on 13-Apr-2017




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Bankruptcy Records Page 1 Salient Points About Personal Bankruptcy Bankruptcy Records Page 2 In these financially difficult times, many of us have difficulty paying our bills and debts, and it turns even harder after a personal sickness or if someone in the family becomes sick, loss of employment, or simply excessive spending. For some individuals, these financial obligations can be so overwhelming that it controls their life, and they at some point will be left with only one option - declaring bankruptcy. Personal bankruptcy is regarded as the last measure with regards to managing one's debt because its impact is long-lasting as it is far-reaching. People who declare themselves bankrupt get a discharge which says they do not have to repay certain debts, which could offer you a new beginning. Sadly, your bankruptcy court records will stay on your credit report for 10 years. People who have bankruptcy records will find it hard to obtain credit, life insurance, auto and home loans, and in some instances even have a job. Those who declare bankruptcy can choose between two kinds, namely, Chapter 13 and Chapter 7. Chapter thirteen enables those who have a steady income to retain ownership of their property, such as a mortgaged house or car, which they may otherwise lose through straight bankruptcy. Most of the time, the repayment plan would span a 3 to 5 year period, and once you have made all the repayment you will be handed discharge of your debts. Chapter 7 also referred to as straight bankruptcy, will cause liquidation of all non-exempt properties. Your property might be offered to an official appointed by the court, or handed over your creditors. Records Page 3 Given the impact that bankruptcy can have on ones life, it is crucial that you take control of your finances to prevent it from happening. For starters, you should make it a habit to make a budget. You can do this by listing your family's income from all sources, then recording your monthly expenses. By using this method, you can keep track of your spending patterns, recognize necessary expenses, and know how to prioritize your spending. Also try to contact your creditors immediately if you have difficulty in settling your obligations. In many instances, they will draw out repayment schedule that is more feasible for you. Mortgage companies can even suspend your payments temporarily if they believe the said difficulty in paying is temporary. Lastly, get help from professionals. There are a lot of organizations that provide credit advice at no cost to you, or for a small price, and it is not a remote possibility to locate one in your area.