I believe that no one wants to file bankruptcy however, there are some instances that make people consider it, such as the following:
- Creditor harrassment
- Loss of income
- License suspension
- Wage garnishments
If you (or someone you know) are planning to file for a bankruptcy, I suggest that you first checkout some bankruptcy class online or a credit counseling course perhaps to help you learn more about bankruptcy before plunging into it.
Bankruptcy is a drastic step and the new bankruptcy law had made it harder to wipe out your debts in court. The new law made the already complicated steps much more complicated so you need to be wary of people you’re dealing with – or you might just end up in a worse situation that the one you were in prior to filing.
It is important that you seek the help of experienced and legitimate professionals when filing for bankruptcy. While some say that “self-help” will do them well especially in terms of savings, you must remember that “ignorance of the law excuses no one” and the court will not be lax on you just because you do not have proper legal background and training.
Before, during and after the bankruptcy procedures, you should have a plan on how to improve your situation financially. Bankruptcy gives you basically a “fresh start” by wiping out your debts but if you do not know how to manage your finances, you’ll continue to struggle financially.