When is the Right Time
for Bankruptcy? ®
By MOSES FOSTER, President
Achieve Black Wealth, L.L.C.
America may have the wrong idea about bankruptcy.
Filing for bankruptcy is largely branded as an attempt
by scofflaws to get out of paying the debt they’ve
accumulated by buying items they couldn’t afford.
A Harvard Study exposes different reasons however –
in fact, in a recent survey, 50% of bankruptcy filers
cited medical bills or illness as the catalyst for bankruptcy.
Regardless of the reason, if you or someone close to
you is considering bankruptcy, here are three things
you should know:
-
Think hard about it.
Bankruptcies stay on your credit for 10 years and
can make it hard to buy things like homes or cars.
- Timing is important. many people file
just after a job loss or a major illness - although it's
difficult to predict, try to waith until you've been through
the worst of the crisis before starting to rebuild with
a bankruptcy.
- Get the paperwork right. If your case
is dismissed because you didn't file the right papers, it's
much harder to show good faith and successfully complete
a bankruptcy going forward.
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