Occasionally, bankruptcy is unavoidable, but frequently, the consumer was not informed of other options that, in the grand scheme of things, would have been a superior financial choice. However, if the consumer does not labor in and comprehend all facets of the booming financial lending market, it is not surprising that they may be unaware of some of the available options.
For instance, a debt consolidation program or debt consolidation loan may be all you require, as they do not bear the extremely negative long-term effects of bankruptcy and do not affect your credit report as drastically as a huge red flag to future lenders. With debt consolidation, you transfer your unpaid obligations to a debt consolidation company and make a single monthly payment. This additional financial breathing room is frequently all that is required to avoid bankruptcy and enable the consumer to get his financial act back in order.
Bankruptcy is more complicated than you probably realize, and it can cause far more harm than the apparent damage to your credit score. Many individuals believe that erasing one's debts and starting over is a straightforward process. The reality is that it is anything but straightforward, particularly in light of the recent changes to bankruptcy law. You may have to liquidate assets to satisfy at least a portion of your debt, which may leave you in a worse position than when you began, with the likelihood of obtaining a loan to replace those items significantly diminished.
In the financial lending market, which is thriving despite the current economic climate, the interest rate on loans and mortgages is determined by the lender's perception of the risk associated with lending you the requested amount of money. If the perceived risk is high, the interest rate will be high to compensate for the lender's risk. Yes, you can do your best to clean up your credit report to the utmost extent possible, but the fact that you filed for bankruptcy will still be prominently displayed to the lender. If you filed for bankruptcy a second time with an outstanding debt to this lender, he might be fortunate to recover 10 cents on the dollar, and he is not in business to lose money.
Before declaring bankruptcy, take the time to investigate your options and alternatives. Depending on your circumstances, filing for bankruptcy may be your best option, but you cannot determine this until you've exhausted all other options. Bankruptcy is no longer a """"do-it-yourself"""" process that can be completed from your kitchen table; rather, it is a very complex procedure requiring the completion of a mountain of reports and forms.
Overall, your best option is to consult with a qualified bankruptcy attorney who can assess your situation, provide recommendations, and outline your viable options. Generally, utilizing the services of a bankruptcy attorney will incur legal fees; however, studies have shown that those who used a qualified attorney more than made up for the legal fees through the items they were able to retain or the options presented by the attorney that allowed them to avoid filing bankruptcy altogether, thereby avoiding the severe damage to their credit report.
" - https://www.affordablecebu.com/
