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Filing for bankruptcy is a viable option

16th April 2010
By Paul Collingwood in Bankruptcy Law
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Declaring bankruptcy is considered to be a bad thing. It is looked down upon as a sign of weakness. We have been conditioned into thinking about bankruptcy as the last resort. We have been told to avoid filing for bankruptcy because of the future effects it has on our credit worth. On the contrary, filing for bankruptcy could be a viable solution in some cases. As a matter of fact, an unpaid bankruptcy settlement does not impact your ability to avail of future loans. Sure, filing for bankruptcy is an emotional decision. After all, it is not a pleasing thing to do. However, it is a good option to regain control over your financial problems. You will be able to have a better control over your massive debts and liabilities.

Filing for bankruptcy can help you regain financial freedom. It can relieve you from unpaid debts and loans. Credit cards and unpaid bills lead to massive debts. People accumulate debt largely due to the misuse of credit cards. It is the main cause for mounting debts. One way of getting rid of mounting unpaid debts and bills is by filing for bankruptcy. It will help you deal with your financial predicament effectively. You can rest assured that an unpaid bankruptcy settlement will not affect your credit status all your life. You would still be in a position to apply for a home loan or other loans, not immediately of course, but a few years down the line. In other words, you are not scarred for life if you declare bankruptcy. Things will get better for you with the passage of a few years.

One of the most common misconceptions about an unpaid bankruptcy settlement is that it reduces your chances of getting loans from financial institutions. This is not true. There is hope after bankruptcy. In fact, you are in a better position to handle your finances. You can start life afresh. You would be on your way to great financial freedom. Okay, your bankruptcy stays in your credit report for ten years from the date of filing; however, it does not imply that you can't get new credit at all. You can definitely avail of a new loan. However, you might have to put up with high interest rates. But this is better than not getting a loan at all. So there is a possibility of getting loans in future. In a nutshell, the possibility of getting new loans cannot be ruled out completely.

There are many myths about unpaid bankruptcy settlement. Bankruptcy is wrongly perceived by most people. Bankruptcy does not spell doom. It is in fact a viable financial alternative. It can help you get rid of unpaid bills and debts. It can restore financial freedom and peace of mind. Filing for bankruptcy might damage your credit to a certain extent. It does not mean you are doomed for life. You definitely stand a chance to qualify for new loans and new credit. Damages can be repaired!

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