There are advantages and disadvantages of filing bankruptcy. Declaring bankruptcy is a big decision. It’ll have an adverse effect on your credit and may also make it difficult to take out loans and lines of credit, such as an auto loan, credit card, or mortgage.
At the same time, however, a bankruptcy can help you get your finances in order. In the long run, declaring bankruptcy may improve your finances. It’s smart to consider all types of bankruptcies and to talk with bankruptcy attorneys when considering such a big step.
A bankruptcy lawyer can help you understand the different types of bankruptcy. He or she can also answer questions, such as are business bankruptcies public record? You may also have to take steps during active bankruptcies to show the court that you are trying to get your finances in good shape.
In some cases, it may be possible to improve your finances without declaring bankruptcy. You may be able to reach new agreements with creditors, for example. Either way, talking with bankruptcy attorneys is a wise idea. When it comes to your financial health, acting sooner rather than later often proves beneficial. As such, it’s wise to speak with an attorney right away.
Did you know that in an average month, over 3,000 people are likely to file for bankruptcy? Bankruptcy is a difficult process. When you declare bankruptcy, you
- Have to pay court fees — even though you?re already out of money
- Usually have to hire a lawyer
- May need to sell off property like your car or home
- Will have to have that on your credit score for many years afterward
- May face future difficulties securing loans
In other words — it?s no small decision. And besides all that, certain loans can?t be eliminated, including student debt and child support. You?ve got those loans for life regardless of how much money you do or don?t have coming in.
If you?ve struggled to pay your bills recently, whether it?s because of the high cost of medical care or because you lost a job, or something else entirely, there may be other options for eliminating some of your debt and getting out of near-bankruptcy. Let?s review.
Getting Cash for an Annuity Settlement
Are you currently receiving money from an annuity? You may be aware that you?ll be receiving this money for a long time — possibly decades, depending on the nature of the annuity. What you might not realize is that you can get cash for structured settlements rather than waiting until they pay out completely. Although you might lose about 10% of the value, you?ll ultimately make this up in avoiding all the loan interest you?d otherwise accrue. Paying off your debt now — rather than 20 years from now — is what matters the most for avoiding bankruptcy.
Paying More than Minimum on Your Cards
What many people don?t realize is that when you make the minimum payment option on your credit cards, all you?re really doing is paying off interest while barely touching the actual amount borrowed. You should try and get your bills down to zero as often as possible — this means you won?t be accruing interest.
Investing Your Money
Although it may be hard to think about now, you should try investing your money as soon as you?re possibly able. When money isn?t in your pocket, you?ll be less likely to save it — and when it?s invested your money will actually ?work? for you to make more money, making it easier to get by the next time something bad turns your life into a struggle.
Will you be investing, getting cash for an annuity settlement, or paying more than the minimum?