This is a guest post by Kevin Craig who is a financial writer for various finance related Communities. He has been providing advice on credit card debt consolidation since 2007. With his advice many are now living a debt free life.
Are you contemplating to file bankruptcy to discharge your existing debts? Then you have taken the right decision as filing bankruptcy will help you to discharge all your debts, expect few like student loans, child maintenance and so on. Few debts need reaffirmation during the filing procedure whereas other remnant debts will discharge after the filing process. If you want to avoid the hazards of filing bankruptcy then credit card debt consolidation is a viable alternative to it.
You can discharge your debts as well as avoid creditor harassment after declaring bankruptcy. Try to prepare a list of the assets as these assets will be sold under supervision of a trustee. And the fund raised from it will be used to pay off the debts. But remember that debts like student loans, tax liens, and child maintenance cannot be discharged under bankruptcy filing.
All your unsecured debts inclusive of credit card debt will be discharged after declaring bankruptcy. As you file bankruptcy you are legally eligible to discharge your debts. Bankruptcy proves to be beneficial as it discharges high interest debts that might seem to be unaffordable to pay off. Taking an appropriate decision whether you would declare bankruptcy or not can be a tough choice. This decision might be contingent on your psychological as well as financial state.
If your debts have spiraled out of control and making it difficult to manage your financial state then you can take an expert’s advice, proficient in the field of bankruptcy cases or you can also enroll with a consumer credit counseling service. An expert can suggest you various options according to your financial state thus helping you to take the right decision.
Under the law bankruptcy you can plan to uphold few of your debts rather than discharging them. While declaring bankruptcy people are inclined to reaffirm loans like mortgage and car loans.
Although declaring bankruptcy can eliminate your financial woes with ease but it is popularly ill-popular due to the severe consequences. The stigma of bankruptcy not ruins your credit report for 7 to 10 years. But the financial gurus speculate that filing bankruptcy will help to repair the credit file of people with large obligations as the adverse effect of prolong late payment will be removed from the report.