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Filing for Bankruptcy - A Fresh Start!
Filing for Bankruptcy - A Fresh Start!
By Stefano Grossi
There is nothing to be ashamed of when you consider filing for bankruptcy. Bankruptcy should be viewed as a fresh start, a way to revive your financial situation and start over again. When money is tight and your household is experiencing a crisis, sometimes your best option is to consult with an attorney to learn more about your options and possibility of filing for bankruptcy.
Chapter 7 bankruptcy generally is for those who don't have sufficient income to repay some or all of the unsecured debt. Chapter 7 bankruptcies are ideal for those who have debts such as unsecured personal loans or lawsuits and judgments, medical bills, and credit card debts.
There are few things you can do to help you along the way in rebuilding your financial situation.
First, make sure you have considered all other alternative before filing for bankruptcy. Consult with an attorney and get professional help. You will need to attend credit counseling regarding your financial situation.
Second, you need to be honest. You should not use bankruptcy to manipulate or cheat. Never use credit card loans and other debts to get ahead. This will only be a temporary solution and will get you deeper and deeper in debt.
Third, don't deplete your emergency cash to get by. This should be your reserve cash and you should not deplete it to save yourself from bankruptcy. The chances are that you will be financially stronger if you have some savings that you can use to build your financial situation even after filing for bankruptcy.
Lastly, don't pretend that nothing is wrong. You need to face your financial challenges and although optimism is a superb trait, you need to know when you are in trouble and need to get professional legal help from a qualified bankruptcy attorney.
If you are ready for your fresh start, let us know and we will hold your hand through the process. Visit http://www.legalcreation.com to learn more or set up a free consultation.
Stefano Grossi
LegalCreation.com
By Stefano Grossi
There is nothing to be ashamed of when you consider filing for bankruptcy. Bankruptcy should be viewed as a fresh start, a way to revive your financial situation and start over again. When money is tight and your household is experiencing a crisis, sometimes your best option is to consult with an attorney to learn more about your options and possibility of filing for bankruptcy.
Chapter 7 bankruptcy generally is for those who don't have sufficient income to repay some or all of the unsecured debt. Chapter 7 bankruptcies are ideal for those who have debts such as unsecured personal loans or lawsuits and judgments, medical bills, and credit card debts.
There are few things you can do to help you along the way in rebuilding your financial situation.
First, make sure you have considered all other alternative before filing for bankruptcy. Consult with an attorney and get professional help. You will need to attend credit counseling regarding your financial situation.
Second, you need to be honest. You should not use bankruptcy to manipulate or cheat. Never use credit card loans and other debts to get ahead. This will only be a temporary solution and will get you deeper and deeper in debt.
Third, don't deplete your emergency cash to get by. This should be your reserve cash and you should not deplete it to save yourself from bankruptcy. The chances are that you will be financially stronger if you have some savings that you can use to build your financial situation even after filing for bankruptcy.
Lastly, don't pretend that nothing is wrong. You need to face your financial challenges and although optimism is a superb trait, you need to know when you are in trouble and need to get professional legal help from a qualified bankruptcy attorney.
If you are ready for your fresh start, let us know and we will hold your hand through the process. Visit http://www.legalcreation.com to learn more or set up a free consultation.
Stefano Grossi
LegalCreation.com
Replies to This Discussion
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Permalink Reply by Brian Turner on -
Personal bankruptcies surge 9%
Number of Americans filing for bankruptcy continues to climb. Total bankruptcies expected to top 1.4 million in 2009, highest in 4 years.
By Hibah Yousuf
The number of Americans filing personal bankruptcies surged 9% in October and were on target for the highest annual total in four years, according to a report issued Wednesday.
The American Bankruptcy Institute, an industry research firm that relies on data from the National Bankruptcy Research Center, said 135,914 consumers filed for bankruptcy last month. Almost a third of the bankruptcies were filed under Chapter 13, in which consumers are put on a repayment plan of up to five years.
"The nearly 9% increase in consumer bankruptcy filings in October, together with a 7% jump reported in business cases, demonstrates the sustained stress on the U.S. economy," said ABI executive director Samuel Gerdano.
The group forecasts total bankruptcies to exceed 1.4 million in 2009, which would be the highest since 2005. It would also be an increase of at least 30% from last year.
"People are still carrying a lot of debt in terms of credit cards and home equity loans, and unemployment is still rising," said Maureen Thompson, legislative director for the National Association of Consumer Bankruptcy Attorneys in Washington. "All of those factors are hitting consumers at the exact same time."
While some Americans are able to survive by tapping into savings and retirement funds, Thompson said many middle-income families are struggling after becoming unemployed for longer than anticipated. And with their homes values lower, interest rates creeping higher and credit lines reducing, they are being forced to declare bankruptcy.
The last time bankruptcies were this high was due to a change in the law rather than deteriorating economic circumstances. In October 2005, Congress implemented legislation making it harder for consumers to prove that they should be allowed to clear their debts in a Chapter 7 bankruptcy, forcing more to file under Chapter 13.
To dodge the change, Americans rushed to file for bankruptcy in the months before the law went into effect.
Thompson said an economy that puts people back to work will begin to lower the number of Americans filing for bankruptcy, but she is "not expecting the numbers to turn around in the foreseeable future."
Source: CNN Money
Quote of the Day
Franklin D. Roosevelt
"Men are not prisoners of fate, but only prisoners of their own minds."
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