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Is Bankruptcy the Answer?

By Edited Nov 18, 2016 0 0

If you are reading this then you have probably thought that bankruptcy may be an option for you to get out of debt. It is very common in this economy for many people to find themselves so far in debt that they feel that there is no way out. People who want to pay off what they owe, often feel that there is no way that they can achieve this goal no matter how much they cut back on their current spending. If this is how you fee, then you are not alone. This is also why the idea of declaring bankruptcy has become so popular. The question is is bankruptcy really the answer for you.
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How Much Debt Are You In
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The first thing that you need to think about when it comes to the idea of bankruptcy is how much money that you really owe. This should not just be an estimate of what you think that you owe. A real vision of your debt comes from getting the current balances of everyone that you owe and adding it up. This will also help you if in the end that you decide to file for bankruptcy. At this point, you may think that you are so in over your head that you are never going to see the light of day.
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What Can You Afford to Pay
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Step two of looking into the reality of your debt situation is making a realistic budget and see just how much money you have coming in. This budget should look at cutting your spending habits down and finding every spare cent that you have to put towards your debt. Before you decide to give bankruptcy a try, you need to find out if you can really afford to pay these bills off on your own. There is a way to pay off any size of debt if you can put money towards this goal each month.
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What Are You Doing For the Next Ten Years
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Before you decide to declare bankruptcy, you need to realize what it will do to your credit. Bankruptcy stays on your credit report for seven years and it can take ten years before you are clear of the ill affects. This is why it is not a decision that should be entered into lightly. You will have a hard time changing many things in your life if you decide that bankruptcy is for you. This includes where you live. Many apartment complexes will not even rent to someone within the first 5 years of discharging a bankruptcy.

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