The time when one is engulfed in debts is the worst time of life. There can be unpaid bills, late and high credit card fees piling up, outrageous interests of creditors and more. You may come across financial state when you realize that the bankruptcy can be the best solution for you, but the consequences of filing bankruptcy should be monitored before actually going for it.

You can weigh the actual consequences that are associated with bankruptcy by meeting with some credit card counselor and then gathering complete knowledge of your liabilities and assets. A large number of companies are available that will let you know about the pros and cons of filing bankruptcy and also recommend what they think is the best course of action you.

Talking with a bankruptcy lawyer will also help. Bankruptcy lawyers may charge a small fee for consultation but they will update you with the current laws and information that you may need to deal with, if at all you file bankruptcy. Use your meeting with the lawyer to ask a number of questions and also address the concerns you have with filing bankruptcy.

You must have a complete knowledge of the kind of bankruptcy that you can file. Chapter 7 of the bankruptcy law discharges almost all allowable debt but you may have to go through tests that prove that your income is much below the required level. If you make too much money then you need to find bankruptcy according to chapter 13 which is actually a repayment plan. By filing bankruptcy under Chapter 13 also, you'll be able to eliminate a very large portion of the pending debts but in this case you will have to fulfill a repayment plan.

It is important that you realize that filing bankruptcy may lead to losing your possessions at home. Although some states allow one to maintain certain amount of share in Car, home and other possessions but in case you have more equity than the amount that has been allowed, the court may appoint trustees to sell off the non--exempt assets. You have to decide if it is worth losing a few things or not in order to completely eliminate your debt. Keeping these important factors in mind when help you take the right decision.



Brian Joneta also writes about Bankruptcy and Credit issues including Declaring Personal Bankruptcy and Bankruptcy Law

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