Salient Points About Personal Bankruptcy

Download Salient Points About Personal Bankruptcy

Post on 13-Apr-2017




5 download

Embed Size (px)


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