Why You Need To Think About Bankruptcy As A Pragmatic Way To Avoid Foreclosure
For many years bankruptcy was considered a \?last resort\? for any person having monetary difficulties. But that is actually superannuated thinking. Bankruptcy should truly be a business call, and if you've been impacted by today\?s finance crisis, mortgage collapse, and very tough job market, it\?s truly something that you should consider.
With so many folk impacted by today\?s financial mess not only is it not frowned on as much but if you look at it from the viewpoint a business call it can essentially be put in a good light.
We should be honest, for many there's a discredit associated with going through bankruptcy. To many it feels like finance failure. Many of us would still feel shamed to need to tell buddies and family you are going through bankruptcy. This is especially true of older folk who have been through the depression or who\?s parent\?s had been through it.
But today, financial problems are very common. There is not any reason to feel a bit like you are failure. Times have changed and bankruptcy isn't the same as it was. And it should not be understood in a fairly similar way.
Yes many people over-reached and maybe even made bad money decisions during the seeming \?boom times\? of the mid 2000\?s but if you did, you are not on your own. And facing the facts you have to do something to get your fiscal situation straight and get back on track is a vital most important step.
Bankruptcy can actually be one of those steps. And dependent on your present position it may very well be the best way to go.
What Is Bankruptcy
Without going into the legal details, when you declare bankruptcy, you are exclaiming to your debtors you can no longer pay your bills. You want to get rid of those liabilities and get a fresh start. For many the hole is so big this is the only real way out to get out of the situation.
Depending on the kind of Bankruptcy you select you'll either be liquidating all your assets or a way to renegotiate your dues in a way that you can live with. If you have a good income, this second choice might be best.
If however , you are going through a job layoff, or have so much credit card debt that it would most likely take an another lifetime to pay them off, then a total liquidation of assets and a total discharge of all debts could be the very best choice. This is named filing Chapter 7 Bankruptcy. Here's where you are truly getting a fresh start.
Naturally the drawback of this decision is your credit will be impacted for some 10 years or so for Chapter 7. Some say your credit report will begin to go up after 5 years but again that's a matter of opinion. Maybe time will tell.
But it's time to look at bankruptcy in a new way. Not only is it more accepted but with so many folks in bad fiscal scenarios it\?s become far more common. That alone is a good reason to cut bankruptcy some slack. Don't you think?
Rick Hart is a web business consultant. He provides tools for bankruptcy lawyers in Tampa that help with bankruptcy, debt consolidation and foreclosures.
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