Filing bankruptcy can almost seem like the end of the world, as it means admitting defeat and asking for help. However, it is possible to rebound from filing for bankruptcy and come out on top of your funds and with a better mindset. There are three things you need to know about bankruptcy before you file.
Not all of your debt will be absolved.
Some people think that filing for bankruptcy will absolve all of their debt and wipe their slate clean. This is not the case with Bankruptcy Cases, and many debts such as child support, alimony, and student loans cannot be absolved at all. Bankruptcy is meant to make your payments significantly lower, not make them completely disappear. This is important for you to understand before filing, and you should do your research as to what you will be able to cover under bankruptcy.
You are required to go to court and attend mandatory classes.
Although it’s a little daunting, in many Bankruptcy Cases you will have to attend a court meeting to consult with your creditors, and you should be adequately prepared to answer any and all of their questions. There are also classes you must take for a small fee both before and after filing for bankruptcy. These ensure that a bankruptcy is the right choice for your current situation and that you understand how to better manage your funds after your case has been filed.
It will appear on your credit history for a while.
Filing for bankruptcy with Thompson and DeVeny Co. LPA is a serious decision that will affect your credit history and credit score for quite some time. This can make taking out loans, applying for a credit card, and even buying or renting a house very difficult. However, these can all be easily dealt with in time thanks to the knowledge from your bankruptcy classes.
While filing for bankruptcy will certainly change things, your life will not be over. Many people find themselves in financial hardships and do not have any other choices other than filing. Remember that you are not alone and there are many resources available to help you with filing, and keep these three things in mind before filing your own.
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