Bankruptcy can be the right solution for those individuals who may need a way out of overwhelming debt, but it is not a band-aid for poor habits. One 28 year old learned that choosing to file bankruptcy is not the fix for money woes. It was made clear that changing those habits will ensure that filing bankruptcy would not be in vain. Not changing these habits will only put one back in a similar financial situation and bankruptcy may not be an option again.
Some people may think that filing bankruptcy will solve money problems when its only focus is on outstanding debt. Bankruptcy does not take care of future debt accumulation. The only thing that can prevent that is better spending habits. Taking a long hard assessment of outstanding debt will also help you determine if bankruptcy is the best option or if debt consolation is best.
Before making a decision to file bankruptcy, it is be best to consider all available options. For example, if the statute of limitation on a credit card debt has passed, this may not be a debt you are obligated to pay. However, it will remain on your credit for seven years. Statute of limitation begins from the time of the last payment or last use of the account whichever is later. Some creditors are willing to settle for 20% of the balance to satisfy the debt. If you are financially able to pay these creditors, bankruptcy may not be the best option.
However, larger accounts where the statute of limitation has not run its course, such as a reposed vehicle or medical bills bankruptcy protection may be in order. Filing a Chapter 7 bankruptcy could resolve all eligible debt if you qualify. Contact a qualified bankruptcy attorney to determine your options.
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