Should I File For Bankruptcy?
There is never a quick answer to this question. Generally, if you can pay off your debts within three to five years then filing for bankruptcy is not a good idea. If this is not possible, then filing may be a viable solution to eliminate your financial obligations. However, before filing for bankruptcy, it is advisable to explore alternative routes. In some circumstances, creditors may be willing to work out repayment plans or lower their interest rates. In addition, some creditors may be willing to settle your account for less than is owed. Filing for bankruptcy should be viewed as a secret weapon of last resort.
The decision to file for bankruptcy is one that should not be made in haste or without a great deal of thought in advance. Unfortunately, there are people today who see bankruptcy as an easy way to resolve financial woes and do not consider alternatives that could work just as effectively. If you are wondering if you should file for bankruptcy, here are some things you should consider before making your final decision. In the best of situations, bankruptcy is intended to assist people who find themselves in adverse financial circumstances that have become overwhelming. There are several good indicators that you either are on the way or have already reached a state where bankruptcy is at least a viable option. One of the most common signs has to do with the status of your current outstanding debt. People who choose to file for bankruptcy are often behind on making payments on loans, mortgages, and credit cards. There may be some effort to cover these late payments by transferring balanc
If you are having trouble making the minimum payments, then you are not getting anywhere. I filed for bankruptcy in 2000. It was the best thing I ever did. You can get a car loan, I did, and at a pretty decent rate considering the bankruptcy (10%). I had no trouble getting a job after the last one I had was sold and got laid off, and I am an accountant, and they did check my credit. What I was told by an employer was, the bankruptcy is not necessarily a deal breaker. What they look for when they check your credit is not necessarily bad credit, but a distressed financial situation that may make you likely to be dishonest. If they see that you have all this debt, and see how much the minimum payments are, and see that you wouldn’t be able to make the payments on the salary they offer you, then that would make them think twice. However, if they see that you filed bankruptcy and no longer owe all this money, that is less of a red flag to them.
