Bankruptcy is seen as a fresh start for many people.
Bankruptcy is prominently mentioned in the Constitution. Article 1, Section 8, Clause 4 of the United States Constitution provides:
The Congress shall have Power To… establish… uniform Laws on the subject of Bankruptcies throughout the United States…
Bankruptcy is a necessary option for those with high debt to income ratios. However, it does come with serious consequences. Your credit will be ruined for up to 10 years, the process will cost you atleast 1-2,000$ to file and lenders will be very weary of you. As a Bankruptcy paralegal myself, I would not recommend anyone file for bankruptcy who has less than 10,000$ of debt. Debts can be paid down, negotiated, and so forth without destroying your credit report! However, if you find yourself in the midst of a foreclosure or simply cannot see a foreseeable way to escape, then bankruptcy could be your best option. If you are thinking about this option, consider these 10 strategies.
These are just a few basic tips when it comes to filing for bankruptcy in Chapter 7 and Chapter 13 cases. If you have any additional questions. Feel free to contact me at Naliniglobalconsulting@yahoo.com