Sunday, October 19, 2008

Bankruptcy Advice You Might Find Helpful

Given the economic downturn, there is a flood of Americans in search of bankruptcy advice. The creditors are calling and they are at their wit's end. Many people already have destroyed credit, so they're looking for any ounce of relief to help them start over again. Since bankruptcy law is a complex web, there are many misconceptions about it.

First, let's look at some of the misconceptions that come out of bankruptcy advice. Some believe that you must be flat broke to file for bankruptcy, but the only requirement is that the debtor cannot pay the bills as they are due. Another misconception is that those who file will not be eligible for credit in the future, when in reality, the listing will be on your report for 10 years, limiting your access to credit but not outright destroying your chances at redemption. In actuality, creditors will know that you cannot file for bankruptcy again for another six years, so you're less risky than a borrower who has a low credit score from arrears accounts in collections.

When you're seeking advice from a credit repair attorney, be sure to double-check what can and can't be discharged. For instance, you'll still have to pay off the Government if you owe taxes for the past three years. However, if you have personal income taxes over 36 months old, then you can discharge them through bankruptcy. Fiduciary taxes cannot be discharged, nor can most student loans and liens. If you owe child support or alimony, you will still have to pay up. If you don't list debts on your bankruptcy petition, then they will not be covered. If you have debts from drunk driving or other "willful and malicious" harm, you'll still have to pay your dues. However, there are many things that can be removed when you file for bankruptcy, such as all unsecured credit card debt, wage garnishments, utility termination, fraudulent credit claims and foreclosure.

After you receive bankruptcy advice, there are a few things to consider before you file. First, be sure you can't negotiate with your creditors, reduce your balances with a settlement letter or arrange a monthly payment plan. Generally speaking, if you can only afford minimum monthly payments on your bills and cannot pay off all your balances in five years, then you should file for bankruptcy and then focus on credit restoration services.

There is probably something you face every single day. No, it is not your reflection in the mirror or your family. It is the accumulation of bills and credit cards. That every day spending that begins to accumulate until you are faced with a mountain of bills and not enough paycheck to cover it all. People can easily find themselves snowed under by these bills and may even find themselves losing their home and their possessions when they cannot make payments in a timely manner. Bad credit is all too easy to get into but you can find your way out.

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2 comments:

Anonymous said...

Kevin Trudeau's Debt Curse Book has helped a decent amount of people get out of bankruptcy it seems. I know he has sold a lot of books like natural cures as well with quite good success. But there was something recently with him not being able to do more informercials.

Anonymous said...

That is really good advice - thank you for posting that.