Life After Bankruptcy

Bankruptcy – immediately after hearing this word, several people who remain affiliated with business react as if it is the worst word to ever speak of. But what exactly is it and why is it surrounded with a layer of negativity? To put it in easy words, bankruptcy is a term used for a court process that sees to it that a business is rid of its debts by allowing them to eliminate or repay them. It essentially is a way for you to start anew and begin with a fresh foot forward, rid of any and all debt you were previously trapped under.

This leads us to believe, that bankruptcy is not necessarily always the worst thing to ever happen. Often it becomes a necessity with regards to your situation, circumstances and time. But how do you decide if going bankrupt might be the best option for you? Here are a few points to evaluate before you come to a decision.

Can you file?

The first thing to do, is to know whether or not you are even eligible to file. If you are not eligible, then your process stops here. According to what you will mention in the paperwork that is to be submitted to the court, if your income exceeds the median wage of the state and still have enough money left to cover some of your debts, then you will not be able to file.

Will your circumstances improve?

Before making this decision, you must be sure there is no way your conditions can be improved in the future. If you have a sum expected from somewhere in the time to come which can help you pay your debts faster, then you should wait it out.

Are you prepared to give up what it takes?

Bankruptcy will require you to give up some property as well as it will be mentioned in your credit report for 10 years. You must make sure you are mentally prepared to face and handle these issues. If you are, it means you should file.

Do you have any other options?

If you are reluctant, make sure to analyze any other options you may have to get out of the mess you are in. If there is no such option, then you may file.

Will going bankrupt solve your problem?

Most importantly, you must be willing to begin again with a positive attitude and better management than before. Bankruptcy has the huge advantage that it allows you to start afresh and forget about past woes. If it does solve the problem you are facing, then do not hesitate to file.

Filing for Bankruptcy

If it helps you to get a hold of your conditions and establish yourself once more without making the mistakes you regretted the first time around, bankruptcy is certainly not a bad option for you. Instead, sometimes it can be the best option to side with. Let us take a look at why it is so.

• The immediate and aggressive collection of debt payments stops for the time being.
• Things that may hurt your credit even more than a bankruptcy mention, such as missed debt payments, repossessions, or lawsuits, may also be removed from your history.
• You can rebuild your credit from the beginning, this time around better and stronger.
• Through exemption policies, most of your property will be exempt from bankruptcy.

Filing for a bankruptcy case can be quite beneficial to you and your family. The process is indeed an emotionally and physically altering one, and it can truly weigh you down. But you must view it as a new and fresh start instead of as a failure and lay down the bricks again.