Have you ever had to ask yourself the awful question of “””should I foreclose or file bankruptcy”” There are certain debts out there that cannot be discharged as bankruptcy, such as alimony and child support debts, student loans, and debts incurred as a result of fraud. But this is nothing to play with, falsifications on bankruptcy forms will constitute as perjury, and bankruptcy fraud is a federal crime here in the United States.
Bankruptcy is not as uncommon as many might think, especially over the past couple years! Although we have decreased from last year when 1.38 million Americans that filed for bankruptcy, legal technology Epiq Systems estimate that nearly 1.25 million Americans will file for bankruptcy this year, which still seems like a pretty intense amount.
An often misconception of filing for bankruptcy is that people think if you are rich that there is no way you can go bankrupt… well just ask celebrities like Mike Tyson, Willie Nelson, Elton John, Larry King, Jerry Lee Lewis, or Anna Nicole Smith if they have ever declared bankruptcy, and the answer will be yes. So listen up people, money can run out and debts can pile up no matter who you are or what your career is.
Before asking the common question of “”Should I foreclose or file bankruptcy””, It is important to know what both of their true meanings really are. The function of bankruptcy is to allow a person or a businesses the option of obtaining a discharge of a payment plan for their debts. The function of foreclosure is to allow a mortgage lender the ability of claiming ownership of any real estate to to help satisfy the balance owed on a past due loan.
If you ever find yourself in this pickle, it is a good idea to seek out some bankruptcy law attorneys because they will listen to every one of your bankruptcy questions and answers that they will give will be the best advice you can find. So when should you file for bankruptcy? Well, that is a tough question, but it will definitely be pretty apparent to you when it happens. But if you ever find yourself living paycheck to paycheck, cannot seem to develop any type of workable budget, or if you are worried about debt collectors, it is then a good time to go for credit counseling, because this is usually required anyway before being able to file for bankruptcy.
So when it comes down to the ultimate debate of should I foreclose or file bankruptcy, make sure you do not just jump to conclusions or assume anything, if you feel like your struggling financially, then you probably are. So it would be smart to look to a credit counselor for any bankruptcy tips and advice before making any sudden moves. Refernce materials: koehlerbankruptcy.com