There is little doubt just about everyone has been impacted in one way or another by the economic downturn. Are we in a recession or not? Who can really say? What is clear is some people have been pushed to the financial edge and bankruptcy is a concern.

When your computer freezes up, what do you do? You hit the reboot button. Well, bankruptcy pretty much serves the same function with your finances. It is a chance to acknowledge you are in way over your head and need help.

Often, the biggest issue with bankruptcy is making the decision to file. You should always speak with a bankruptcy attorney in your area to get advice regarding your specific situations, but there are a few general questions and issues that always arise.

Many people treat the bankruptcy decision as though it is a question of life and death. It is not. It is a very important economic decision that can have major results, but it is not the end of the world. Millions file each year which says a lot.

A second misconception that arises is that the debtor will be unable to ever get credit again or will at least have to wait seven to ten years. This is simply untrue. You will probably be shocked to discover the opposite is actually true.

When your bankruptcy ends, a very weird thing is going to happen to you within a few days. You are going to get inundated with credit offers. Yes, even from the credit companies you just left hanging in the bankruptcy proceeding.

Why would credit companies extend you pre-approved offers? Well, you can only file bankruptcy once every seven years. Credit companies view this as a guarantee you will be paying for this period. Most car loans, for instance, are not that long.

Is it socially acceptable to file bankruptcy? Sadly, it is becoming more common these days, but who really cares anyway? Besides your creditors, who is really going to know? Nobody unless you tell them.

I do not mean to suggest in any way that filing bankruptcy is a decision that should be made lightly. It is not. It is very serious, but it is primarily a financial decision. The world will not end the day you make that filing.

This entry was posted on Sunday, August 10th, 2008 at 2:31 am and is filed under Student Loans and Consolidations. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.