Everyone experiences financial hardships at one point or another, but the key to getting back on your feet is knowing when and how to take action. This is not only to ensure that you get the best results possible, but also to minimize any negative consequences that could arise from improperly handling the situation.
When a person’s debt accumulates to unmanageable levels, the best route to take can be to file for bankruptcy. But how do you know what it means to file bankruptcy?
This is a question that many people in these situations have. And with an estimated 1,071,932 bankruptcy claims in the United States just in 2013, you can be sure that there are many questions that need be answered.
What some may underestimate is how negative the repercussions of filing bankruptcy can be without having a good understanding of every step in the process. Here are a few reasons to seek out help filing bankruptcy:
- When to file: It’s important to know when to file bankruptcy, because once it begins, you could be stuck with creditors taking your assets with no way out. On average, a chapter 7 bankruptcy will take around six months to complete. That’s a long time to sit in financial limbo.
- Different types of bankruptcy: Beyond just knowing when to file bankruptcy, it’s also important to understand which type of bankruptcy will best suit your needs. For example, chapter 13 claims can be used by individuals, but most often chapter 7 bankruptcies are preferable with individual claims.
- Credit: Even after a bankruptcy filing is completed, there are still residual effects that can last long after. A chapter 7 bankruptcy, for instance, can remain on a person’s credit for up to 10 years after it’s been arranged. With help filing bankruptcy, you can reduce the extent of the mark on your credit report that could prevent you from being able to apply for other lines of credit or even in finding a job.
Even though bankruptcy claims can be a saving grace for those in debt, without bankruptcy help the consequences could outweigh the benefits. Don’t put off seeking out help filing bankruptcy, and get yourself out of debt as quickly and easily as possible.