When is filing for bankruptcy not the answer
If you feel that you’re hopelessly buried in debt and it has very few assets, filing for bankruptcy can not be the solution to put an end to their financial problems. In fact, it may get worse. If you are unemployed, welfare, they have little or no money in a bank account, does not have a car, or rent or live with others, filing for bankruptcy can do little to improve their financial situation.
Creditors may not strip your life needs and you can not collect any money from you to pay your debt if you don’t have it. You might get a lawsuit, but you will be wasting your time if you are unable to pay them. In addition, any public aid which may be receiving is untouchable by creditors.
If you do not own a house or a car that could be exploited to pay its debts, creditors have even fewer options available to collect your debt. Cannot be someone to remove your personal belongings and they can not even sent him to jail for not paying his debt. Only the risk of a prison sentence if they do not pay taxes or child support.
As crazy as it may sound, if you find just by scraping and have no assets that can be seized, not to do anything about its debt. If you can’t pay your debts any longer at least it should focus on the payment of your living expenses. The bankruptcy could cost you hundreds of dollars that you simply can afford on your current financial situation.
Bankruptcy may be more damaging to your credit report infringement payments to its creditors. Bankruptcy puts a black dot on your credit report for 7 years under Chapter 13 bankruptcy or 10 years under Chapter 7 bankruptcy. Unpaid debts not dried by the bankruptcy will be treated automatically as uncollectible after several years and it should be taken off your credit report in 7 years.
Over the years you can expect that their debts are considered uncollectible, you may find yourself with a lot of debt collectors angry. Despite filing for bankruptcy, you can help these people on his back, filing for bankruptcy is not the only way to stop the harassment. The Fair Debt Collection Practices Act (FDCPA) and the laws of several States are already underway to protect him from harassment and abusive debt collectors. To contact the Attorney general in your state if you think that the bailiffs in illegal way that is stalking him.
Before having to deal with debt collectors, try to negotiate with your creditors directly. If you can convince your creditors that you may not be able to continue to make the payments that may be able to negotiate for lower monthly payments, lower interest or even paying less than what should be finished with its debt. The reasonable majority of creditors prefer to collect a partial debt owed instead of nothing. If you can afford to make agreed payments that could save your credit, as well as your finances.
Bankruptcy is only one of several options available to you if your finances are on the brink of collapse. You will need to determine if bankruptcy is right for your particular situation and, if not, what you need to do to get your finances on track. The decisions you take will affect your financial future for many years to come.