Important facts about bankruptcy

by Jamie Billings

Bankruptcy is a tough road that best reserved for those who do not have any other options. Generally speaking, filing a Bankruptcy is a last resort. While it should not be entered into lightly, it may prove itself to be a positive solution for you. If you cannot pay your debts or you are dealing with a lawsuit bankruptcy maybe an option for you. Bankruptcy is an option when you have little or no income in order to make any kind of monthly payment to your creditors. The court will take away from you the responsibility of paying your debts. Bankruptcy usually lasts 12 months, after which time, any unpaid debt is written off.

One of the major aims of bankruptcy law is to give a financially distressed person an opportunity to make a new financial start. Bankruptcy laws help people who can no longer pay their creditors get a fresh start through liquidating assets to pay their debts or by creating a repayment plan. It also protects troubled businesses and provides for orderly distributions to business creditors through reorganization or liquidation.

Bankruptcy is an important decision and the law and it application to one’s particular situation can be very complicated. It is generally recommend that one consult with an attorney with experience in the personal bankruptcy field.

If you feel comfortable with attempting the bankruptcy process without an attorney there are several online bankruptcy services and information that may assist you. Bankruptcy information provides an expert advice and a live forum alongside a regular roundup of the latest news, statistics, and research from the world of debt solutions. You may also find reports on issues surrounding bankruptcies.

If you are deeming for a bankruptcy help, you should first understand the different consequences of bankruptcy so you will then be able to make informed decisions about the alternatives available to you. You can also try and come to an informal repayment arrangement with your creditors you can consider a formal arrangement.

There are a number of factors to consider in deciding whether bankruptcy is an appropriate option. You may wish to consult an attorney before proceeding to file for bankruptcy.

Bankruptcy laws help people who can no longer pay their creditors get a fresh start through liquidating assets to pay their debts or by making a repayment plan. Bankruptcy laws also guard troubled businesses and provide for orderly distributions to business creditors through reorganization or liquidation.

Bankruptcy will really give you a fresh start. However, careful consideration should be given before filing for bankruptcy, because doing so may affect your credit and like any ordinary phenomena, it have other consequences.

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How Long Will A Bankruptcy Filing Stay On My Credit?

People in Victorville want to know: “How will Bankruptcy affect my credit? How long will a Bankruptcy stay on my credit report?” This is only normal because they want to rebuild their credit as soon as possible.

Let’s talk about that.

How will Bankruptcy affect my credit?

Think about it. If you’re at the point of needing a Bankruptcy, then your credit report is probably about as bad as it can get. Chances are that charge-offs, garnishments, late payments, and foreclosures have already taken a significant toll on your credit.

Just after you file Bankruptcy your credit score will drop. Then it will gradually start to rise and get better over time. Here’s why.

First, creditor will change the way they see you. Right now they see you as a person with a lot of unsecured debt that might file Bankruptcy at any time. But after a Bankruptcy they’ll begin to see you and someone with little or no unsecured debt (i.e., credit cards). They’ll realize you can’t file Bankruptcy again for 8 years. That means you’re a good credit risk and you’ll probably start receiving credit card offers again.

Second, your debt-to-income ratio will greatly improve overnight.

How long does Bankruptcy stay on my credit report?

The length of time your Bankruptcy stays on your credit report varies for one credit reporting agency to the next. Here’s the general rule:

• A Chapter 7 Bankruptcy remains on your report for 10 years from the date of filing.

• A Chapter 13 Bankruptcy remains on your report for 7 years from the date of filing.

• Other negative information (i.e., late payments or charge-offs) can stay on your credit report for 7 years.

What should I do after filing Bankruptcy?

First, you need to set a goal to start rebuilding your credit rating. That’s not as difficult and you may think.

The most important thing you can do to rebuild your credit is PAY YOUR BILLS ON TIME. Like someone has said: “It’s not Bankruptcy that hurts your credit; it’s not paying your bills on time.”

Second, after you’ve received your Bankruptcy discharge, you need to check with the 3 major credit bureaus at least once a year to make sure that your credit reports are correctly stated. If you find errors or debts that haven’t been removed, then write the credit bureau and point it out. Demand that they correct it.

Remember … the Bankruptcy court doesn’t report any information directly to the credit bureaus. It’s your responsibility to do that.

Here’s how to get your free credit report

Did you know that recent federal law gives yo the right to have one free credit report per year from each of the 3 major consumer credit reporting bureaus. Because each of the credit reporting agencies have different information you should check out all 3 and correct any errors on your reports.

To get your free credit report you can click on the following link

www.AnnualCreditReport.com

Here are the links to Contact the 3 major credit bureaus directly for yourself.

www.Experian.com

www.TransUnion.com

www.Equifax.com

Contact a Bankruptcy attorney to learn more about how a Bankruptcy may help you and how it will affect your credit.

I’ll bet you have some questions. You can Contact Me by phone at 760-241-3215. Stephen Brittain

Talk with me. I’ll treat you like a friend.