How Bankruptcy Affects Individuals (Part One) By Michael Vereen
How Bankruptcy AffectsIndividuals (Part One)By Michael Vereen
Bankruptcy is the legal process of canceling debtsin order to provide a new beginning for anindividual or a company. When starting theprocess of filing for bankruptcy, you might wish toconsider the following:
Bankruptcy Does Not Erase EverythingCertain debts are not covered under bankruptcy,and those who file for bankruptcy are stillobligated to pay them. The most commonobligations that cannot be discharged are childsupport payments, alimony, tax payments, andstudent loans. Filing for bankruptcy may also notstop your landlord from evicting you, either.
Bankruptcy Hurts Your CreditA declaration of bankruptcy may remain on yourcredit report for up to 10 years (per the Fair CreditReporting Act.) This will affect your ability to takeout additional loans; you will likely be chargedhigh interest rates.
Immediate Relief Will Help You RebuildThough there are disadvantages to declaring bankruptcy,it may be the best course of action because the short-term relief from debt can offer the chance to repairfinances. Incessant calls and threats from collectionagencies are a source of great stress for debtors, butonce bankruptcy has been approved, they will cease, atleast temporarily. Debt collectors may not pursue legalaction, correspond in writing, or make telephone callsregarding debts once you have declared bankruptcy.Pending foreclosure of property may be interrupted, yourwages will cease to be garnished, and repossession willno longer be an impending threat.
The process of bankruptcy is complicated, but therelief can make an enormous difference inrebuilding your life and financial standing. In thesecond part of this article, we’ll provide more tipsregarding bankruptcy.
About Michael Vereen: An attorney with 25 yearsof experience in bankruptcy law and criminal law,Mr. Vereen practices in Cherokee, Forsyth, andCobb counties in Georgia. He prides himself onpersonal attention and integrity when handlingcases. Mr. Vereen can be contacted at (770)345-9449 or www.vereenlaw.com.