Just Say No To Filing Bankruptcy!

Bankruptcy is a personal decision and one that can only be made by the individual in debt. Although only the individual can make this decision, there are people or companies out there that will discuss options and help debtors come to an educated decision whether to file for bankruptcy or to avoid it.

So, before you decide whether you are going to file or avoid bankruptcy, read first the effects if you are going to file one.

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1. Consider that filing for bankruptcy protection is not for free.

IT COSTS:
The filing fee for Chapter 7 is $175.00
The filing fee for a Chapter 11 is $830.00
The filing fee for a Chapter 13 is $160.00

(There are other additional fees.)

2. Not all debts are dischargeable.

Secured creditors retain some rights which may permit them to seize property, even after a discharge is granted. Spousal and child support obligations and most tax debts are NOT dischargeable.

3. File debtor's Assets and Liabilities

Within 15 days of filing the bankruptcy petition, schedules of the debtor's assets and liabilities must be filed. Failure to file the appropriate schedules will result in dismissal of the bankruptcy and the barring of the debtor from filing again for a period of time.

4. If a case is not dismissed and a discharge is entered by the court, the debtor is prohibited from being granted another discharge in chapters 7 and 11 within six years.

5. Fraudulent information or acts by the debtor are grounds for denial of a discharge and may be punishable as a criminal offense.

6. May affect the debtor's ability to obtain credit while the case is pending and following the conclusion of the case.

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1. The debtor's can obtain a fresh financial start.

2.Those who are eligible for Chapter 7 maybe discharged from unsecured debts.

3. You may be able to keep some of your assets. Although the law is the one who will decide which asset you will keep.

4. If you file bankruptcy under Chapter 7 and 13, the law will prohibit collection activity .

Note: If the creditor continue to collect bills form you, the creditor may be cited for contempt of court or ordered to pay damages.

If you declared yourself bankrupt expect the following:

* You will lose all your assets of all real value that includes your home,life insurance and possibly your pension.

* Lost any assets that you may acquire during the term of bankruptcy such as inheritance and , insurance settlements and growth of asset value in your home.

* All your bank account, credit cards, etc are closed.

* To fill up numerous forms and have an extended with the Official Receiver.

* If you own a business be it automatically closed and all your employees dismissed.

* Have your building society, creditors, landlord etc immediately informed.Lose professional and business status, have some employment opportunities prejudiced, face rejection from many associations and societies.

1. Call Your Creditors - Explain to them your situation. If you explain to them that you are considering bankruptcy, they might give you an alternative payment plan to help you get through the difficult time.

2. Plan Your Budget - Take a hard look at your financial situation. An organized way to do this is to write out a budget. Understanding how you are spending your money may help you get a handle on your finances and avoid bankruptcy. You'll be able to see areas where you can decrease your spending, such as eliminating the premium channels from your cable service or switching to a free Internet service.

3. Debt Consolidation Loan - If a bank finds you credit worthy, you could get a debt consolidation loan to pay off your as an alternative to filing bankruptcy.

For more information about debt consolidation click here.

After bankruptcy, your financial situation will certainly not be the same. Yes, a record of bankruptcy will stay on your credit report for seven to ten years. However, this doesn't mean you can't do anything about it. In fact, a speedy recovery from bankruptcy is very possible as long as you do the correct steps. In this article, we'll talk about the positive steps you can take to get over bankruptcy and rebuild your damaged credit in the soonest possible time.

Read more: Is It Possible to Recover from Bankruptcy?