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When Gathering Info on Filing Bankruptcy, Consider the Source

April 16, 2012 | Comments: 0 | Views: 135

A large number of Americans are being forced into filing bankruptcy because of the economy. When someone faces financial distress and don't know where to turn they usually will first ask their friends for advice. With all the information online, many people have become quite opinionated when it comes to the topic of filing bankruptcy. Much of the information that is online has been put there by the credit industry. This is because they have their own agenda also. The general theme that most people carry around about bankruptcy filing is that it will ruin your credit and you will never be able to buy a home or anything else because of that. This is an outright fabricated lie that has about 5% of truth in it. The only truth in that statement is it will be reported on your credit report as a bankruptcy filing.

It is also true that creditors get upset about an individual that got their slate wiped clean by filing bankruptcy. But that doesn't mean that they won't get credit. It might not be the same creditor that the individual included in their personal bankruptcy, but creditors are opportunists and when they see an individual leaving Chapter 7 bankruptcy, they will see opportunity.

First of all, when filing Chapter 7 bankruptcy all of the unsecured debts will be wiped out with the bankruptcy discharge. Creditors know that some of these individuals will walk from bankruptcy being virtually debt-free.

Second, they know if the person has a steady income and no debt, they also know this person can't file Chapter 7 again for another eight years. This seems like a pretty good risk for a creditor.

Over the years bankruptcy has had a stigma of being taboo and most people would try and avoid it at all cost. In today's economy, it's no time to wait around hoping for the economy to come back. The smart money is on being proactive and when things get tough jump in and file for bankruptcy. Many people have made the mistake of listening to their friends and not speaking with a bankruptcy lawyer. Like all friends do, they get the typical encouragement of not to worry as things will be better soon. With the debt the US has incurred over the last few years, it seems that it will be a long time before this economy recovers. It's now time to circle the wagons and protect the family's assets and consider filing bankruptcy before it's too late.

Lately, there have been many people that fall into the 99 week category and have had their unemployment insurance expire. Now, they have no income and many of them have spent any nest egg they had set aside for that rainy day. If they had heeded the economic warning signs and consulted a bankruptcy lawyer to get an honest opinion they might not be in the position of being too broke to file bankruptcy. This is kind of a new category of people that are unemployed and gone through everything they own to keep creditors happy and now have nothing to lose.

The bottom line is when things get tough, be proactive and consult a bankruptcy lawyer. Don't bury your head in the sand and pretend like the problem will go away.

The author is a professional that formed FilingBankruptcyPros.Com which provides information for debtors considering filing bankruptcy under Chapter 7 and Chapter 13 bankruptcy and helps individuals stop foreclosure and eliminate their debt by putting them in touch with a local bankruptcy lawyer.

Source: EzineArticles
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