Filing bankruptcy when your money woes have gotten too severe is a definite option, but it isn’t an option you should take lightly. However, once you realize that you’re sinking financially, you should consider it. You’ll know you’re sinking when you’ve got creditors calling your place of work, your friends, and your family members.
You know you haven’t got the resources to pay your credit card debt and other debts, and your paycheck has been garnished in order to pay particular people or businesses you owe money to. That means you’ve got less money than ever for essentials, and the bills keep piling up.
Maybe you’re worried about your home being foreclosed or your vehicle being repossessed. Once you’re in Chapter 7 or Chapter 13 bankruptcy proceedings, you’ll be able to name creditors who won’t be able to come after you for the money after that point.
That happens as soon as an Automatic Stay in Bankruptcy is issued right after filing. Of course, if you forget to name certain creditors, they still will be able to sue you for the money owed. And there are certain responsibilities you can’t avoid with bankruptcy. You can’t avoid alimony payments, or back taxes, or government fines, or student loans.
If you’re supposed to pay damages to someone who’s been hurt by your drunk driving or if you’ve been intentional in your actions to defraud a creditor, you’ll still owe that money. But if things have really become dire for you, don’t hesitate to start the bankruptcy proceedings. In the long run it could save your credit rating, though in the short run it will be a liability.
You can’t be fired from your job for filing these proceedings, which will be a relief to some people who think that could happen. However, you have to realize that if you’re looking for work, your viability as a new employee will be affected and you may not be able to find another job for several years. So proceed wisely and carefully in these matters and get legal help if you need it.
John has been writing articles online for nearly 4 years now. Not only does this author specialize in a variety of subjects, but you can also check out his latest website on Turkey Deep Fryer which reviews and lists the best Masterbuilt Turkey Fryer.
