Can you file for bankrupcty if all of your debt is in debt consolidation?
Question:
Answer:
If you're already in Debt Consolidation, I'm not sure why you would now want to file for bankruptcy.
Under the new bankruptcy law, there is a Means Test which is a complicated mathematical calculation to determine what type of bankruptcy a debtor must file. There are several parts to the bankruptcy means test that must be completed using figures established by the U.S. Census Bureau and the IRS.
Part of it is to determine if you're even eligible to file for bankruptcy at all and to determine if you can repay some or all of your debt. Since you're already in consolidation, apparently someone has already determined that you can repay some or all of your debt. You've apparently managed to borrow enough money to pay off your credit cards and now you don't want to repay the loan? I'm not getting it.
If you have some other details, let me know.
Yes. We did once.
ou don’t file for bankruptcy just on an impulse. It should be a properly chalked out plan that should be used as a backup plan once you have exhausted all other ways out. Though bankruptcy can sort your present financial situation, you should ponder and know the implications of filing bankruptcy are going to create problems for you for another 7-10 years. People filing bankruptcy choose to do so only to improve their present situation, but do not consider its long-term impact. But when they come to know about it, they regret taking that option, instead of other options, but by then it is very late.
If you are just about to file bankruptcy and are looking for a solution, there are many other options that you can use. If you feel as though you are sinking in debt with no hope in sight and hardly have any asses, filing bankruptcy need not be the only solution to your financial woes. It does seem like an easy and attractive solution to your financial problems; always remember it should be used as a last resort.
More Related Questions & Answers...