Must-knows Before Filing for a Bankruptcy


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Credit Card Applications » Research » Guides » Building Credit History » Must-knows Before Filing for a Bankruptcy

Must-knows Before Filing for a Bankruptcy

Updated: December 26, 2012

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

The economy is not too good and here you are drowned with a lot of payables. To make things worse, you don't have enough resources to pay them off. What are you supposed to do now? Yes, you can borrow money from friends and relatives but it might not be enough or at times you can't even loan from them. This might not be an option you would never want but it is the only chance you've got for now - file a bankruptcy.

When you've got no other ways and have decided to go for bankruptcy, always make sure that you go to bankruptcy experts; someone who could help you get out of your debts in a legitimate process.

Here are some things you need to know or do before filing for a bankruptcy:

You should be well-informed about the process. People who file for bankruptcy are required to go through counseling on pre-bankruptcy (which isn't free by the way). If during the counseling, it had been found out that you have exceeded a certain level of income; you may still be obliged to make repayments.

Say, things had been resolved, don't be too confident yet. Don't presume that you're completely cleared out. Your declaration of bankruptcy will appear on your credit report for up to ten years. Bankruptcy may have gotten you out of debts but it can also preclude you from having business transactions in the future. It could also bring some embarrassments on your part since declaration of bankruptcy is made public through newspaper legal notice announcement.

Out of desperation, we tend to be so gullible at times. When you're approached by persons or companies offering an instant fix on your credit report, better brush the idea off especially when money is asked in exchange for their service. It is safer that you hire a licensed attorney that waste few dollars with scammers. If you don't know where you can find licensed or bankruptcy experts, The American Bankruptcy Institute can provide you resources.

Inventory will be done on everything that you own. It is important that you declare everything from houses and cars that you own, bonds and stocks, loans and even child support so proper. And correct proceeding will take place. Bear in mind that not all debts can be erased by bankruptcy. Child support, taxes and student loans are still needed to be repaid.

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.
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