Facts about Bankruptcy

Advertising Disclosure

Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from many credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.

Facts about Bankruptcy


Updated: December 26, 2012

Add to Favorites:

Bankruptcy could be an inevitable thing if we don`t start changing our spending habits. Spending more than what you earn is the main reason why businesses or individuals go bankrupt.

Bankruptcy is a legal way for business owners and individuals who are unable to repay their creditors. Since it is legal and legitimate, a lot of people having unpaid obligation issues opt to this. It is a way of resolving financial issues but it is important that you understand how it really works.

Filing or declaration of bankruptcy can only be done once in six years. You may want to save this very effective option until you feel that it is the only and best way for you to resolve your financial issues. Yu too should now that there is no need for you to file bankruptcy just because you are being threatened by your creditor`s.

Filing bankruptcy might either do good or bad in the situation so if you are not too sure on what to do and when is the right time to do it, talk it out with an expert. There are lawyers who specialize on this matter. Bankruptcy laws differ from the place and the situation so different laws may also apply.

Here is the summary of what bankruptcy can do for you:

- it could stop all harassment form debt collectors
- it cold prevent the foreclosure of a property like your house and gives you leeway to catch up on delayed payments
-  It could discharge you from most of your debts
- It can prevent the termination of some services due to unpaid dues and
- It could stop wage garnishments.

While these are the things you can be free of, here are the summary of the things that can`t be resolved with bankruptcy:

- it can`t eliminate the obligations from a co-signed loan
- it can`t discharge the debts incurred after bankruptcy filing
- it can`t be used to discharge child support and alimony, some student loans and criminal penalties.

In most cases, the individual or party who declared bankruptcy needs to appear to the court to come up with an agreement with their creditors. Your creditors are present during the meeting but worry not for any abusive word from them for it is never allowed. It often takes four months to half a year for the case to be completed after the day of filing.

It is easy to prevent bankruptcy; all it takes is learn the proper way of managing every cent in your pocket.

All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products’ Terms & Conditions on the issuing banks' websites.
Add to Favorites:
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.

Related Research:

Autumn 2017: Best Rewards Credit Cards for Thanksgiving Shopping

Autumn 2017: Best Rewards Credit Cards for Thanksgiving Shopping

Posted: November 20, 2017

Thanksgiving is coming, and whether you are hosting a meal or coming as a guest, your spendings are going to accumulate faster than you can notice. A holiday feast is a costly matter – each year Americans spend around $50 on a Thanksgiving ... Continue reading
Top 5 Cards for Travel from Our Partners Autumn 2017 – Expert Choice

Top 5 Cards for Travel from Our Partners Autumn 2017 – Expert Choice

Posted: November 8, 2017

Nights are drawing out, the wind is colder every day and you already feel the lightest breath of winter on your face - autumn is here. Holidays are over, kids are back to school and all you are left with are hefty holiday bills that you ... Continue reading
Balance Transfers Within The Same Bank: What You Need To Know

Balance Transfers Within The Same Bank: What You Need To Know

Posted: November 2, 2017

Transferring a credit card balance from a high-APR card to a card with a zero-interest promotional rate is one of the best ways to pay down debt. But many people have questions about how to do it. Specifically, some folks wonder whether ... Continue reading