Bankruptcy Debt Relief

Bankruptcy debt relief can be a quick fix panacea that has people who are drowning in debt dreaming of a new life and a new start and finally being able to face the day again. We'll give them one thing: it will be a new day tomorrow and the next day and the next, but that's all. A long time ago, some sociologist developed the top five negatively life altering events a person can go through. They include divorce, death of a loved one, a disability, a severe illness and finances. A lot of people are so loaded with fiscal obligations that every day is taken up with thinking about and brooding over how to escape. Borrowed money mountains can be so high that marriages crumble, jobs are lost and depression sets in like fog in a valley.

Bankruptcy debt relief comes in two forms: chapter seven and chapter eleven forms. Chapter seven is the waving the white flag and fully surrendering to the supposed inevitability of never getting out of the hole. Chapter seven could be akin to putting a tuna fish sandwich in the microwave and nuking it for sixty minutes. There just isn't much left to feel good about. The chapter seven brand takes away most of a person's possessions in order to cover creditor obligation.

In each state, the possessions that are allowed to be kept are widely varied in a bankruptcy debt relief court ruling. A few states have an entire home protected, but in most states, only a small part of equity can be maintained. A few states will allow cows and pigs to be kept but only cars valued fewer than two thousand dollars. Another state will allow saddles to be kept and an ATV for each family member, but all states will allow family photos and bibles to be given to the filer of bankruptcy. Most of what can be saved in a bankruptcy filing can be put in the back of a small U-Haul. And the worst thing about this severe action being taken is the ten year "Financial Failure" sentence it brands on a credit history report.

Can a person get credit again after a bankruptcy debt relief filing? Not from banks and credit unions, but there are guaranteed predatory lenders who will take the risk of a bankruptcy filer and lend money, but the interest rates will be astronomical. This translates into the same mess that was created before the bankruptcy filing unless the debtor has learned the all important lesson of living within one's income means and eliminating or harshly limiting credit card usage. A number of people want to write God glibly out of their lives, professing that somehow there is no proof of His existence. But the bible tells us that's quite impossible when it says, "For the invisible things of him from the creation of the world are clearly seen being understood by the things that have been made, even his eternal power and Godhead; so that they are without excuse." (Romans 1:20)

Chapter thirteen bankruptcy filing is like a kid on a rollercoaster for the first time. He wants to get off the ride because he's nauseous, but is anxious to try it again. Chapter thirteen bankruptcy debt relief allows the filer to keep his assets because he is willing to pay his debts but can't do it under the present conditions. The filer petitions the court to allow for payments to be spread out over a much longer period of time, therefore lowering the monthly debt obligations. But whether it is chapter seven or thirteen, the results are the same in terms of how creditors will look at the one who sought legal relief.

Credit scores are a product of a number of factors. These include the consumer's payment history, the amount on each debt account and how close each account is to its debt ceiling, the length of the credit history, the types of loans in that history and the credit applications or inquires made on that account in the past two years. A bankruptcy debt relief legal action puts a huge smear across the pages of the history, affecting a person's ability to get low car insurance rates, rent an apartment, buy a house, get friendly interest rate loans and even in some cases, to get a job. And for the one who wrestles with ethics and morality, the question can lay heavy on the heart. Can a person walk away from obligations that he willingly and gainfully agreed to pay earlier?

Before seeking any sort of bankruptcy debt relief legal move, how about considering the following suggestions? First, sell everything one has except food, a few items of clothing, a beat up car and truly personal items; a personal item would have to be defined as something you would want put in the casket and jewelry and a bass boat don't count. Get some used lawn furniture for the living room and live the monastic life for the next five years. Put all of the sale money on one's debt principle and have a long talk to yourself about how the unwillingness to live within the income one possesses has put you in that situation. Get a second job and work nights and weekends for the foreseeable future and put all earnings on the highest interest accounts first and talk to a credit counseling agency before filing for bankruptcy debt relief.

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