the,Right,Time,For,You,File,Ba finance, share, loan Is it the Right Time For You to File For Bankruptcy?
If your financial problems have reached the point where you do not see a way out and you feel as though you are drowning in debt, your best way out is through declaring bankruptcy. Filing may well allow you to get your finances back on track Thankfully, there are now several web sites that are there to help people like you with bad credit to find the fast personal loans that you need. When you have bad credit, the first thing that you should be looking for is a loan company that
In the past years, many people sought bankruptcy to escape debt problems. Nevertheless, since the amendment of the bankruptcy law in 2005, the process of filing for bankruptcy has been made more difficult to discourage people from using bankruptcy as a way to escape payment responsibilities to creditors. If you're experiencing problems with debt, is bankruptcy the solution you need? In this article, let's tackle some things about the new bankruptcy procedures that you should know before submitting your bankruptcy application. Should I File for Bankruptcy? Before filing for bankruptcy, consider other possible solutions to your debt problem. For instance, can you acquire a debt consolidation loan so you can pay off your debts more easily? Have you tried negotiating with your creditors? The new bankruptcy law mandates consumers to complete a credit counseling course at least six months prior to filing. The purpose of going through credit counseling is to help consumers find alternative solutions to debt instead of bankruptcy. The credit counseling agency accredited by the government would be the one to decide whether bankruptcy is the best option. If the credit counseling agency recommends bankruptcy as your only option, that's the time a borrower can start the bankruptcy application process. Filing for Bankruptcy Preparing the bankruptcy application is also a complicated process. It is recommended to hire assistance from a bankruptcy attorney to ensure that all the documents would be filled out correctly. It is interesting to note that any false information provided in the bankruptcy application is considered as a violation. For this reason, bankruptcy lawyers have increased their service fees due to the greater responsibility assigned to them. The Qualification Income Means Test Once your bankruptcy application has been submitted, the applicant would need to go through the "Income Means Test". This test will determine as to what Chapter of bankruptcy the applicant falls under. The Qualification Income Means Test is based upon the borrower's monthly income and capability to pay off debts. If you qualify for a Chapter 7 bankruptcy, you will be released from all your payment responsibilities to creditors. On the other hand, those who don't qualify for a Chapter 7 bankruptcy will be subjected under the Chapter 13 bankruptcy. This chapter of bankruptcy puts the borrower under a repayment program for a certain time period. The bankruptcy State court will set a specific percentage of salary deduction depending on the borrower's capacity to make repayments and on the extent of debt. The Consequences of Bankruptcy Whether you qualify for a Chapter 7 or Chapter 13 bankruptcy, remember that this record will remain in your credit report for up to seven years. Such a record can become a disadvantage especially when acquiring personal loans or when applying new credit. Clearly, bankruptcy is not an instant solution to debt problems. Before making a decision as to whether you should file for bankruptcy or not, why not seek professional advice from a legitimate and trusted credit counseling agency first? This way, you can be sure that you will not regret the decision you've made. Article Tags: Credit Counseling Agency, Income Means Test, Bankruptcy Application, Credit Counseling, Counseling Agency, Income Means, Means Test
the,Right,Time,For,You,File,Ba