Filing for Bankruptcy: Is it the right thing to do?
The only sure way to know if filing for bankruptcy is right for you is to consult with a certified bankruptcy attorney.
It is true that bankruptcy does bring down your creditability in the market and thus debars you from borrowing in the time to come. Furthermore, in some of the cases, you may have trouble with renting and getting certain jobs.
For a period of time, filing of bankruptcy could lower your personnel status in society. Therefore, it is better to pay off the loans yourself instead of filing bankruptcy – if at all possible.
The tag of the bankruptcy is gone from the credit list after a period of 7 to 10 years from declaration of bankruptcy, yet many lenders still pose the question “Have you ever filed for bankruptcy?” Although this may be an uncomfortable situation, you need to honest and let them know, because if you don’t it’s considered fraud that’s open to prosecution.
Here are a few things to consider if you are thinking of filing for bankruptcy.
- It is better to settle with your creditors since most of them would rather start settling your debts than have it discharged in bankruptcy?
- It is wiser to negotiate a settlement if there is any delay in making payments – or when you have missed several payments?
Creditors will not really be worried or find any reason for alarm if you could maintain your payments, so it’s best to settle the debt when you’re behind on payments. This period makes lenders highly motivated to negotiate and reduced settlement amount.
There are some agencies known as credit counseling agencies who can negotiate well with your creditor. It is good to take their help if you fail to negotiate with your creditor yourself. They are well trained for the purpose and may even be able to negotiate a lower interest rate as well as monthly installment for you.
In case you have medical bills before you and you are unable to pay for the said medical bills, then filing case for bankruptcy can provide you some relief. The suit for bankruptcy can either exempt you completely from paying those bills or provide you an extended period of time of 3-5 years to pay for those medical bills.
You should consult a bankruptcy attorney to review your circumstances thoroughly and then arrive at a final decision whether filing suit for bankruptcy would be the right alternative for you.
Filing for bankruptcy is not at all considered to be the best choice – but sometimes it could be the right choice if you just can’t pay your debts and in over your head.