Important Facts About Bankruptcy

ADVERTISING DISCLOSURE

ADVERTISING DISCLOSURE:
Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from most 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.

Credit Card Applications » Research » Guides » Building Credit History » Important Facts About Bankruptcy

Important Facts About Bankruptcy


Updated: December 26, 2012

When a person has no way to repay his debts, the only way out is through a declaration of bankruptcy. Filing for a bankruptcy entails some legal steps that should be religiously followed. There are no magic steps during the process so. When you're approached by some companies promising you quick fixes then they definitely are scammers.

One should understand that bankruptcy cannot eliminate all your debts. Before you go ahead and file for a bankruptcy, you should have enough knowledge on what debts are forgiven and which are not. In order for you to know this, you may want to attend a counseling which is aimed to educate you about the processes and the facts about bankruptcy. Just be reminded though that the said counseling is not free.

As stated earlier, filing bankruptcy is a way to get out of debts but there are some exceptions. The following are the types of debts which are not subject to non-repayment:

  • penalties or fines incurred due to commission of law violations such as traffic offenses and criminal restitutions.
  • debts which you failed to declare unless your creditors are aware of your bankruptcy filing
  • Debts you have incurred due to death or injury that resulted from intoxicated driving
  • child support and
  • taxes.

Non-payment of debts can lead to embarrassment and harassment. Harassment can come in the form of phone calls or letters from your creditors and if you can't take them anymore seek a bankruptcy expert's advice the soonest possible. Be very careful with whom you make transactions with for you might only fall under the hands of people who would only take advantage of your situation. The American Bankruptcy Institute can help you find legitimate experts or lawyers.

As the classical saying goes, an ounce of prevention is worth more than a pound of cure. In order for you to avoid such an embarrassing situation, learn how to manage your finances. There is a big difference between a want and a need. Make purchases only on your needs, besides you still can get by without buying your wants.

Don't take out loans for nothing or if you don't have enough resources to make the repayment. If you have credit cards, make it a habit to pay your dues on time to avoid penalties. It actually is easy to avoid bankruptcy; it is just a matter of knowing what your financial priorities are.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
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:

Top 5 Cards for Travel from Our Partners: Spring 2018 – Expert Choice

Top 5 Cards for Travel from Our Partners: Spring 2018 – Expert Choice

Posted: February 12, 2018

Days are getting longer, snow is melting and you already feel the lightest breath of warm breeze on your face - spring is here. Summer holidays are looming, and so is Easter with its shopping. You can lift in spirits and let CreditLand ... Continue reading
Cash Back or Travel Rewards? Here’s How to Decide On The Right Card

Cash Back or Travel Rewards? Here’s How to Decide On The Right Card

Posted: February 10, 2018

If you're trying to find the perfect rewards credit card, you might feel like you're drowning in options. There are just so many out there, and many of them look similar. This can make it tough to decide on a card. One thing people often ... Continue reading
Price Protection: Credit Cards That Will Refund a Price Drop

Price Protection: Credit Cards That Will Refund a Price Drop

Posted: February 8, 2018

Those who often find themselves buying stuff and then discovering that they could pay less for the same item they've just bought, will appreciate this credit card benefit – price protection. This is the least known and the most neglected ... Continue reading
You've successfully subscribed!

Please specify the following:All these fields are optional

Your Credit History
Themes you are interested in:

By providing this information you help us make our news letters more useful and informative. Thank you!