Things to Keep in Mind if You Are Considering Bankruptcy in the New Year

Things to Keep in Mind if You Are Considering Bankruptcy in the New Year

If your financial situation is stressing you out and seems like more than you can handle anymore, you might consider bankruptcy. If you do, it pays to gather some information before you make those initial steps. It also helps to pay a visit to a bankruptcy attorney who can answer some of the questions as they pertain to your individual situation. One thing that you should know is that your debts won’t simply disappear. You may be obligated to pay at least a portion of your debts back. On the other hand, there are some myths about what cannot be discharged in bankruptcy, and it’s important to find out if the opposite is true for you.

Including Student Loans

There are a few things that you “can’t” list on your bankruptcy, but there are exceptions to those things. For example, student loans are one of the things that people assume you can’t include in bankruptcy, but this isn’t always true. If you can prove that your circumstances negate the possibility of you ever being able to pay back your student loans, they may be included in your debts when you file bankruptcy. It’s situations like these that our attorneys can help you with to ensure the best outcome.

Learn to Build Credit

Before you file, you may be required to take a class so that you can learn about other options that may be available to you. The primary purpose of this class is for you to make sure you have exhausted all other possibilities before filing bankruptcy. After the bankruptcy is discharged, you may need to take a class to learn how to better manage your finances in the future in order to avoid falling into the same situation when you start over.

Starting Over and Rebuilding Credit

The good news is that once your bankruptcy is discharged, you get to start over with somewhat of a clean slate. You may think bankruptcy means you won’t have any credit, but this also isn’t always the case. Creditors know that you can only file once every eight years, so they are often willing to take a chance on you. However, you should expect higher interest rates than you may have previously been offered. It takes some time to build your credit back up and establish a positive credit rating, but it doesn’t mean you will never have good credit again or qualify for another loan.

In most cases, you can expect a great deal of relief once you have filed bankruptcy. The fresh start often alleviates the stress and worry of dealing with out-of-control debts that you can’t pay.

Do you have questions regarding bankruptcy? Let us know in the comments. Also, don’t forget to share this information with someone who may be in the same situation.

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