Some people say that Bankruptcy should be your last resource, when all else fails but this is not necessarily the case, Bankruptcy should be the first choice for some people.
Debt is a common problem in American households that are struggling with credit card, loans, mortgages, etc.
Most Americans inquire debt at some point in their lives, simply due to the way the economy is set up. In order to obtain a loan for a home, or buy a car or do other such important transactions, you need credit.
Credit is what tells companies whether you are trustworthy, it speaks for you.
If your credit is ruined by late payments, no payments, or huge amounts of debt, consolidating your debts into one payment may not be a good option.
Debt consolidation helps people who are struggling with debt but who are also probably still paying their debtors. When your payments are too high to pay separately, and yet you have the ability to keep paying to save your credit, then consolidation is probably right for you.
On the other hand if your credit has been ruined by missed payments, etc and you are unable to keep paying, whether is due to health issues, the loss of a job, etc, then bankruptcy is probably right for you.
Also if you own a business, properties, etc that you are afraid to lose due to your inability to pay off other debts, bankruptcy may also be right for you since it will allow you to keep these things while getting rid of your other debts. Of course you will have to pay the court for keeping these things.
There are two types of bankruptcies: Chapter 7 and Chapter 13.
A Chapter 7 bankruptcy refers to a more simple type of bankruptcy in which the person includes all of his/her debts and doesn’t keep valuable assets, except maybe one home.
A Chapter 13 bankruptcy is a little bit more complicated because it is for people who own businesses or have assets that are valuable and that they would like to keep while getting rid of their debts.
To find out which is your case you should visit a bankruptcy attorney that will asses your case individually, their first meeting with you is usually free so you have nothing to lose.
Bankruptcy will clean your debts so that you can start up your credit history once more from scratch.
Even though various companies claim that they can remove late payment from your credit history and such, these are usually scams.
The surest way to clean your record is through a bankruptcy.
Contrary to popular belief you can begin to build up your credit shortly after a bankruptcy, in 1-2 years.
The cost of bankruptcies ranges widely depending on the attorney and on the specific case, therefore even though the average price is around the 1500’s to find out how much it will cost you, you should visit an attorney.
Bankruptcy Legal Counsel
There are many options out there to deal with debt and you should explore each and every one of them, but if after reading this article you decide to do a bankruptcy visit an attorney since it is really not recommendable to attempt a bankruptcy without legal counsel.