Looking at the Bright Side of Bankruptcy

Author: Jon Arnold

| Posted: 08-11-2007 | Comments: 0 | Views: 14 | Rating: (53)

(?)

Is there a bright side to bankruptcy? Yes there is, although bankruptcy should still be considered your option of last resort, and the bankruptcy option only employed after you have thoroughly investigated all other options and alternatives. There are many downsides to filing bankruptcy, not the least of which is that this will become a huge red flag on your credit report for the next seven to ten years.

But sometimes bankruptcy is the best option in a given situation and if that is the case, you need to understand that there are bright sides to bankruptcy. Keep in mind that, especially with the new bankruptcy laws, one cannot file for bankruptcy on a whim, nor can it be done if you have already declared bankruptcy in recent years. The bankruptcy court needs to APPROVE your bankruptcy before things can move forward, and that approval is not nearly as automatic as it once was. Yes, after looking in your particular financial situation in a great amount of detail, the court may actually decide that you are not eligible to file bankruptcy, and you have to seek another option out of your financial difficulties.

One of the bright sides of bankruptcy, if you are approved to be able to file, is that the harassing phone calls from your creditors come to a screeching halt. But here is where it gets tricky because you also have some responsibilities here. After you have filed your bankruptcy petition and it is approved by the bankruptcy court, knowledge of this fact is not known to your creditors automatically. So the next time they call after your bankruptcy has been approved, keep track of the information. Write down the date and time of the call, which creditor it is, the name of the collections agency, and the name of the individual calling. Let them know that you have filed bankruptcy. By federal law, that stops calls from that creditor.

The reason for keeping a notebook handy where you record this information is so that if a creditor calls again who has already been told that you have filed bankruptcy, again write down the name, phone number, name of the person and name of the creditor as well as date and time of the call. With that information in hand, you can inform the creditor that they are now in violation of federal law. The ball is now in your court. There have been cases where a creditor continued to call after being informed that you had declared bankruptcy, and as a result, the consumer filed a countersuit against that creditor for their continued calls, and the debt from that creditor was wiped clean!

Another bright side to bankruptcy is your potential ability to start over with a clean slate and no financial obligations. Getting new credit is going to be difficult and you will have to spend time getting things like a personal loan, car loan, or even a mortgage, but it can be done. But since your credit report will show your bankruptcy filing clearly, be aware that it will be a longer row to hoe than it previously was.

If you file bankruptcy under the Chapter 7 regulations, you will need to demonstrate and prove that you are unable to pay even a portion of your outstanding debts. If this can be proven to the court's satisfaction, your slate will be wiped clean.

The decision to file bankruptcy is not an easy one to make, and again, you are encouraged to examine all your options and alternatives. But if bankruptcy is your most viable option, make sure you understand the bankruptcy laws and have a bankruptcy attorney who understands them, because you don't want to risk making a bad situation worse.

Rate this Article:

Current: 0 / 5 stars - 0 vote(s).

Article Tags: Bankruptcy Lawyer, Bankruptcy Options, Bankruptcy, Bankruptcy Law, Bankruptcy Advice

Article Source: http://www.articlesbase.com/finance-articles/looking-at-the-bright-side-of-bankruptcy-255150.html

Print article

Send to friend

Publish this Article

Author feedback

About the Author:

For more insights and additional information about Bankruptcy Advice on the New Bankruptcy Laws as well as getting a free bankruptcy evaluation from a qualified bankruptcy lawyer who is local to you and familiar with the laws in your state, please visit our web site at http://www.bankruptcy-data.com

Submitting articles has become one of the most popular means of generating quality backlinks and targeted traffic to your website. Join us today - It's Free!

Article Comments

Add new Comment

Consumer Education is Key When Considering Bankruptcy
By: Jon Arnold | 27/09/2007 | Finance
Free Finance articles for use on your Finance related website. Find articles of the subject of Finance

Bankruptcy Commonly Filed Without Investigating Options
By: Jon Arnold | 19/11/2007 | Finance
Free Finance articles for use on your Finance related website. Find articles of the subject of Finance

Find Out Which Assets are Exempt in Bankruptcy
By: Jon Arnold | 09/11/2007 | Finance
Free Finance articles for use on your Finance related website. Find articles of the subject of Finance

An Inside Look at Chapter 13 Bankruptcy
By: Jon Arnold | 09/11/2007 | Finance
Free Finance articles for use on your Finance related website. Find articles of the subject of Finance

Bankruptcy Chapter 7 & Helpful Tips For Finding An Effective Lawyer
By: Dean Shainin | 14/06/2006 | Finance
Free Finance articles for use on your Finance related website. Find articles of the subject of Finance

How to Determine if Bankruptcy is your Best Option
By: Jon Arnold | 16/04/2007 | Finance
Free Finance articles for use on your Finance related website. Find articles of the subject of Finance

Bankruptcy Process - Essential Steps Overview
By: Matthew Hick | 12/11/2007 | Credit

Bankruptcy Help - Different Types of Available Services
By: Matthew Hick | 05/11/2007 | Credit

Got a Question? Ask.

Ask the community a question about this article:

Frequently Asked Questions

I'm receiving 207A benefits based on the last ...
By: Bill259 | 25-08-2008
I'm receiving 207A benefits based on the last contract which has expired. The last contract had a breakdown of benefits such as holiday pay, uniform allowance, and pro-pay. The new contract incorporated these benefits into the base salary. I feel I should be receiving the base salary of the new contract, since there is no mention of any breakdowns in the new contract.

How do i enforce the temporary child support order ...
By: Veronica High | 25-08-2008
how do i enforce the temporary child support order and add child care expenses to the order?

What is the best handgun for law enforcement?
By: Justin | 25-08-2008
What is the best handgun for law enforcement?

Remaining mortgage amount after discharge
By: Kristy | 24-08-2008
I am thinking about filing for Chapter 13 bankruptcy but was wondering what happens to the remaining mortgage amount when the repayment plan is completed and the bankruptcy is discharged?

I am giving a lecture on third parties and I would ...
By: harold gortner | 24-08-2008
I am giving a lecture on third parties and I would like to find out how third parties or independent candidates get on the ballot in South Carolina? What are the procedures for getting on the SC ballot? Thank you. I suppose you have my email address, but in case, it is hgortner@hargray.com

Can a spouse name her children as primary ...
By: dennis | 24-08-2008
can a spouse name her children as primary beneficaries along with her surviving spouse. the split would be 50/50. I thought that the surviving spouse was the beneficary. when the surviving spouce died the estate would be split up between the step children and the child. the marriage has been for 4 years, if that matters any. please advise

Q&A Powered by:

Latest Finance Articles

The History of the Global Forex Market
By: Orlando Thompson | 07/10/2008
In this article we explain what the global forex market is and how it came to be this is very insightful information that will help you in your forex trading system choices.

How To Go About Improving Your Credit Score
By: MIKE SELVON | 07/10/2008
While it'd be nice to live a "credit-free existence," it can be difficult to do so in today's world.

Self Directed IRA Possibilities With A Small Business
By: Jerry Glynn | 07/10/2008
It is normally not possible to set up a self directed IRA with a small business. This article describes a little known strategy that can be used in conjunction with a small business.

Understanding Debt Consolidation Loans
By: Richard Greenwood | 07/10/2008
It can be all too easy to end up in debt and especially during the current times of financial uncertainty you may find yourself unable to make repayments. Consolidating your debt can make your debts easier to manage and lower your interest charges meaning you become debt free faster.

Credit Card Comparison
By: Richard Greenwood | 07/10/2008
Credit card offers are everywhere and all claim to out do each other. How do you cut through the marketing talk and understand the key features you need to compare to make an informed decision. Find out with this informative article on credit card comparison.

Shopping For Auto Insurance
By: Brenda Williams | 07/10/2008
When you get your license for the first time before you begin driving you need to get car insurance as it's mandatory to have car insurance while driving. Car insurance can be rather expensive, especially for new drivers which is why you'll need to ensure that you're getting the best...

Taking 100% Responsibility - the Prerequisite for Creating Money & Marriage Success
By: Leslie Cunningham | 07/10/2008
It's a simple concept, to refrain from blaming and complaining, and yet it's a challenge to change a habit, especially one that everyone else has. Like sticking to your diet, when everyone else around you is enjoying chocolate cake. Keep reading and you'll find out how this relates to your marriage and finances. Then I'll share some action steps to help you become 100% responsible for your life.

Retirement Income Investing and Your Portfolio
By: Steve Selengut | 07/10/2008
Brokerage firm monthly statements are designed to promote either fear or greed, depending on the current market environment. Nowhere on your statement can you find numbers that report your net investment, your total working capital, or your true asset allocation. Current and projected income numbers are given little attention

More from Jon Arnold

Where Do You Turn for Solid Divorce Information?
By: Jon Arnold | 25/08/2008 | Divorce
You don't want to think about divorce, but if that is a reality for you, then there are things you should do to prepare for it, especially if you are not sure your spouse is going to be agreeable to how everything should be split up.

Get the Straight Scoop on Bad Credit Car Loans
By: Jon Arnold | 24/08/2008 | Personal Finance
If you have bad credit and you know it, you can still get a car loan, but don't waste your time with loan applications where you know you will be declined or charged astronomical interest rates. There are many companies that specialize in bad credit loans, especially if you can show them a trend towards getting your finances together.

How to Determine and Raise Your Credit Report Score
By: Jon Arnold | 21/08/2008 | Personal Finance
You should always know what your credit report score is, since this is something that can affect many different areas of your life. Dispute the wrong information which can in turn raise your score, which is to your huge benefit.

Steps You Can Take Now to Get a College Scholarship
By: Jon Arnold | 18/08/2008 | College and University
The best and easiest way to afford the huge financial burden of a college education is via a college scholarship or grant. Here are some tips to help you understand how to start applying for the many scholarships that are available to you right now.

What You Must Know Now About Filing Bankruptcy
By: Jon Arnold | 15/08/2008 | Personal Finance
If you are considering filing bankruptcy you should think twice because doing so may not be in your best interests. Filing bankruptcy is not nearly as easy as it used to be, and these days consumers have several other options that may be better for them.

Presenting yourself Via the Perfect Car Loan Application
By: Jon Arnold | 12/08/2008 | Personal Finance
When you have decided on the car you want, you will need to pay particular attention to how you present yourself on the car loan application. Shop around, since the dealership probably does not have the best loan programs available, and the money you save will serve a much better purpose in your wallet.

Tips for Getting Approved for a Bad Credit Car Loan
By: Jon Arnold | 12/08/2008 | Personal Finance
If you have bad credit and need a car loan, all is not lost. You can still get your car loan but to get the best loan program and best interest rates possible, you are strongly encouraged to follow the tips presented in this article for your best chances of success.

Understanding Your Health Insurance Coverage Needs
By: Jon Arnold | 12/08/2008 | Insurance
If you are looking at what to have covered in your health insurance, take a good look because health care costs are sky rocketing. Look at what you need to keep yourself out of financial trouble, as well as what can be anticipated and then look at your options.

Article Categories

Article Marketing

Article Notepad

Stop Duplicate Content

Term Papers

Need Help?

Sign up for our email newsletter

Receive updates, enter your email below

Use of this web site constitutes acceptance of the Terms Of Use and Privacy Policy | User published content is licensed under a Creative Commons License.
Copyright © 2005-2008 Free Articles by ArticlesBase.com, All rights reserved. (0.34, 16)

Looking at the Bright Side of Bankruptcy

Article Comments

Related Articles

Got a Question? Ask.

Latest Finance Articles

More from Jon Arnold

Need Help?

Site Links

Webmasters

Business Info

Sign up for our email newsletter