Should I File Bankruptcy?

2008-10-22 16:56:46

( Financial )



Should I file bankruptcy is a question asked not by a few but by many who are now facing financial difficulties due to the worsening economy. Bankruptcy seems to be the most scariest option there is for anyone faced with debt problems. However filing for bankruptcy can have its advantages.

One advantage of filing for bankruptcy is that you get relief from the pressure of struggling to pay for debts and you can start all over. You have a clean slate although you won't have access to credit. If you're goal is just to get through the day to day needs and you're not planning to purchase a huge purchase like a new car of a house and lot then you can probably say yes to your question: Should I file bankruptcy.

The truth is the government will not really take everything that you own when you file for bankruptcy. The law may be different from state to state but you are protected to a certain degree. You won't be homeless if you file for bankruptcy.

Aside from asking yourself: should I file bankruptcy? you should always ask the question why. Examine your motivations. There are some financial obligations that you cannot escape from even if you apply for bankruptcy. You still have to pay for child support if you are required to to so before filing for bankruptcy.

One interesting fact to note is that it won't really take long before you have access to credit again. You will have access to creditors who are willing to risk money but will charge high interest rates.

Now if you are in a difficult financial situation, it is not advisable to use credit as soon as you are qualified as it might get you in a vicious cycle of owing money you can't pay.


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