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.

Facts about Bankruptcy


Updated: December 26, 2012

The content is accurate at the time of publication and is subject to change.

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.

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: Summer 2018 – Expert’s Choice

Top 5 Cards for Travel from Our Partners: Summer 2018 – Expert’s Choice

Posted: February 12, 2018

The sun shines more and more each day, flowers are in bloom and you already feel how hot it is getting - summer is here. Summer holidays are almost here, and you are in need of dire preparation. 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!