When someone is going to file for bankruptcy, chances are that they aren't taking everything that they should into consideration.
There are a lot of things that people don't think about when they think about bankruptcy, but knowing them are going to help you to be more prepared.
Here are some of the things that should be considered before filing for bankruptcy: - Which chapter of bankruptcy applies to the person.
- How much they earned in the six months before they filed - Debts which are able to be discharged versus the debt that can't be discharged - Which of the transactions will be risky to any judgment of filing bankruptcy - Which of the assets of the person are going to be exempt.
There are also other things that should be taken into consideration before a person files for bankruptcy.
- It's very embarrassing to file for bankruptcy.
Everyone knows that you do it and there is a certain stigma that you have branded on you.
- The bankruptcy is going to be on your credit score for at least 7 years, and sometimes 10, depending on which chapter of bankruptcy you file.
- It can affect your ability to get a job, to get a house or a car, and many other things.
Even though bankruptcy seems like a quick, good fix, it can cause a lot more problems than it will solve.
Even though you file for bankruptcy, chances are that not everything will be removed and you may have to pay back a lot of your debts anyway.
So it's important to think about all of your choices before you file for bankruptcy and see if there is something else that you may be able to do.
Consider all the options before filing, there may be something better.