Most will be in bad financial situations at some stage in their lives. These are hard times and money is tight, jobs insecure, and mortgages are exorbitant for most in that situation. The answer for staving off personal bankruptcy is not always apparent and many seek debt counselling before taking that step.
Filing for bankruptcy is an emergency debt relief option but it is not the best option. It is a process that involves many financial and legal issues. Bankruptcy will lower your credit score and this will affect your ability to acquire loans in the future. You should make an honest assessment of your current financial position and decide if bankruptcy is the best option. It would be advisable if you also sought financial advice before filing for bankruptcy. Discussed below are factors to determine if bankruptcy is your only debt relief option.
If an individual really wants to avoid filing bankruptcy at all costs, the they should focus on being proactive with their finances. A good way to prevent this from happening is strict budgeting and not overextending themselves with credit. Many people these days get caught up living beyond their means with easy and fast available credit.
Once again, the Christmas season is coming upon us and corporate America is gearing up their ad campaigns as well as store displays to get a piece of the action. Every year many Americans find themselves charging themselves into oblivion during the Christmas season. Creditors make more credit available during this time so they can capitalize on this spending frenzy.
When you apply for a high street account, the bank in question will always perform a credit check on you in order to see if you are credit worthy and if you will be a good risk for them, as they only really like to have good credit customers as their main account holders. If you are in the unfortunate position whereby you have either been bankrupt or indeed have just gone through the process of bankruptcy, then your application will almost certainly be declined. It is also worth noting that all the major high street banks and…
When it really comes down to it, a bankruptcy filing should be one of the person's first choices to eliminate a large amount of debt. For years and years, the topic of filing bankruptcy has carried a stigma that has embarrassed people that have had to file. In reality, there is nothing to be embarrassed about, filing bankruptcy is one of the bricks that are required to make our capitalistic society flourish.
Due to the current financial climate lenders have been tightening up on lending criteria, rules and policies – and maximum age, unfortunately, is no exception. The first frustration of individuals looking to obtain mortgages for over 60s is that they are often restricted with the length of the mortgage the majority of high street lenders will consider.
Planning is the key to arranging financing after a bankruptcy. Most people give little or no thought to the next move before filing a BK. The lack of planning is what makes it difficult.
Look into all of your options before you choose to file for bankruptcy. Before filing, talk with an attorney who can help you weigh all of your options. If foreclosure is imminent, see if your loan can be altered at all through a modification plan. The lender may be willing to reduce interest rates, eliminate late charges or extend the life of the loan. When all is said and done the creditors just want their money, and more often than not will work with you on a repayment plan.
Now that we are once again heading into a holiday season most Americans put a high priority on materialism. As consumer debt continues to rise many Americans will be considering filing bankruptcy once again for their New Year's resolution. Most people take on the attitude that they will have one more outrageous Christmas on their credit cards and then start working on becoming debt-free even if it means filing for bankruptcy.