Filing for bankruptcy can be scary and intimidating. There is a lot of information that you may want to know before filing for bankruptcy. If you are wondering how to file for bankruptcy in Memphis or any other city, here is some information that may help you decide whether filing is really the right option for you.
Filing for bankruptcy does not forgive all kinds of debts. There are certain kinds of debts that, despite filing for bankruptcy, can't be erased. Therefore, it's important to examine your debt and find where most of it is coming from. Some of the kinds of debt that cannot be erased include child support, alimony, some taxes, some student loans, debts occurring from injury while driving intoxicated or from maliciously and purposefully injuring others, and debts that are accumulated after bankruptcy is filed. After taking a look at where the majority of your debt is coming from, you may or may not find it to be in your best interest to file for bankruptcy, depending on if your debts are erasable or not. Filing for bankruptcy does not erase debts for those who are cosigners. Cosigners are often required for those with low or no credit. If you have a cosigner on a loan, such as a car loan, they agree to pay your loan if you are unable to, or file for bankruptcy. This means that they are now required to take over your loan and pay for it. Often times, cosigners are family members, so filing for bankruptcy can place a financial burden on those around you. If you have a cosigner, this makes it important to discuss filing for bankruptcy with them beforehand, so they know what to expect.
Your credit score and report can take a major hit from filing for bankruptcy. Bankruptcy can demolish your credit score, and having a low credit score can make it hard to get loans, or credit cards in the future. Because of this, it can also be hard to build your credit when you have a low credit score. It is a good idea to take a look at your credit score before filing for bankruptcy, to see how it may be affected. Those who already have a low credit score will probably be more apt to file for bankruptcy than those who have high credit scores.
There is not a limited amount of times you can file for bankruptcy. This, however, does not always mean it is easy to file for bankruptcy multiples times after your first time. Depending on what chapter you file bankruptcy under, there may be a time limit for how long you have to wait before filing bankruptcy again. For example, if you file bankruptcy under chapter 13, you must wait two years from the previous date of filing to file for bankruptcy again. Though you may be mostly debt-free, life after bankruptcy can be difficult, especially financially. Finding a good budget that works for you and your family may be a good option after your debts have been discharged, or dismissed. If you are not sure how to create a budget, there are financial counselors or even websites that can help you form a budget. There are a lot of resources for credit counseling.
There is a lot of information that can be helpful before filing for bankruptcy. Knowing what bankruptcy can do to your credit scores, your cosigners, and your types of debt, can all help you decide whether or not to go forward with filing. If you have decided filing is in your best interest but you are wondering how to file for bankruptcy in Memphis, or in any other city, finding a lawyer to help may be a good option for you.
Source : articlesbase.com
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