Debt can be a tremendous burden for you to carry. In situations where your debts are simply more than your income will allow you to pay, you may feel as though there is no way to find relief from these obligations. However, a bankruptcy filing can be the perfect solution for individuals that find themselves needing financial relief.
Will A Bankruptcy Be A Permanent Stain On Your Credit Report?
A common reason for individuals to avoid starting the process of seeking bankruptcy protection is a concern about an inability to rebuild their credit. While there will be a record of the bankruptcy on your credit report, you may find that this will not cause as many problems as you anticipated. In fact, individuals that continue to pay their bills on time following this filing may find that they are able to apply for credit cards and most other forms of financing within a matter of months. Additionally, the bankruptcy entry will stop being reported by the major credit bureaus after several years. As a result, you will be able to eventually fully recover your credit history following your bankruptcy filing.
What Will Happen To Your Commercial Assets?
Individuals who are self-employed may find themselves facing serious worries about losing the assets of their business. However, it is usually possible to exempt the items that are the most essential for the functioning of your business from these filings. This will help you to ensure that you are able to continue earning while still enjoying the protections of bankruptcy. You can avoid the additional hassle and risk of intertwining your personal and commercial finances by forming a limited liability corporation, but you will need to wait until the bankruptcy proceedings are completed.
How Long Will It Take For You To Realize The Benefits Of Bankruptcy Protection?
For individuals that delay filing for bankruptcy until the last possible moment, they can find themselves desperately needing this protection to take effect as soon as possible. Fortunately, creditors are required by law to cease any actions against you as soon as you file the initial petition with the court. If you are contacted by a creditor attempting to seek repayment, you should inform them that you have filed for bankruptcy and refer them to your bankruptcy attorney. The courts will essentially act as an intermediary between you and your debtors to ensure that an agreement is reached that allows you to pay as much of your debt as possible while providing you with an opportunity for a new financial start.