Should You Look At Filing Chapter 11 Bankruptcy?

by Rick Hart on April 3, 2012

It is a hard economy. Perhaps the toughest in 80 years. It’s common for people to have finance Problems.

Enterprises have finance issues too. Sometimes they should cut back on expenses. That suggests people be fired. And it could be awhile before those roles come back.

Then there’s the estate disintegration. Homes are not worth what they were when they were purchased. That suggests many of us are “underwater” and have loans that are bigger then their homes are worth.

And sometimes you don't have to become unemployed or be underwater to have money issues. Maybe you earn a living on commission like a salesman does. Or you rely on your annual bonus check.

With a horrible economy, folk do not buy as much, business is much slower, and those commissions and bonuses will be smaller. And if you are still living on what you use to make, then something’s got to give. It generally means that the loan for that new car, or the new pool you purchased during the boom times… Well the cash coming in isn't enough to cover the money that must go out.

It all adds up to a financial mess for both you and your family.

So what can be done?

Naturally you need to scale back and live within your resources. That is a certainty.

But what if that is not enough.

You do have 1 or 2 options.

Loan Modification

A cool place to begin is to try and get your loan altered. Banks don't want to have to put a loan in default. It is bad on their books. Many will consider a loan restructuring if you approach them.

And accept it or not, they don't want to foreclose on a home either. They don't want to be in the real estate business and have a home to sell in a tricky home market. Many will be very happy to consider loan modifications or short sales.

What About Bankruptcy

While it should not be your first option, bankruptcy can actually be something you should consider. Yes it will take a bit to get your credit record back to good standing (usually about 5 years) but it remains preferable to having it ruined altogether.

And what about the stress.

Having to handle sustained hounding from creditors can take it’s toll. The strain can mess up your day, not to mention a family’s reassurance. And the toll on a wedding is something that is essentially fairly obvious.

Advantages of Bankruptcy

Believe it to be true or not, bankruptcy has many benefits. Here’s the top 3…

1. It can get those bill collectors off your back. Your bills really go away.

2. Creditors must stop bothering you. It’s essentially the law.

3. You get a new start. You can begin to live within your limits again.

Other less clear benefits include:

– You may feel a little bit better. Almost all of the strain will be gone.
– It's easy to get your credit report back to a place you can live with.
– Your house life can get back to business. Perhaps a marriage can be saved. The atmosphere in the home will be less stressful.

So consider bankruptcy as a positive option if you're facing serious fiscal difficulties. You’ll possibly want to chat with a bankruptcy lawyer. They can help you select the very best of many bankruptcy options available to you.

But don't wait. You've not got anything to lose but a large load off your back.

Rick Hart is an internet business expert. He provides tools for bankruptcy lawyers in Tampa that help with bankruptcy, debt consolidation and foreclosures.

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