Many people file bankruptcy every year. Although this may not be the most appealing situation for you, it might be the best way to get out debt and start rebuilding your life. If you are in far too deep and are unable to even function because of your debt, you might consider filing for bankruptcy.
Here are a couple things you should expect after filing for bankruptcy:
1. Your Credit Score Will Hurt
In filing bankruptcy, a debtor is required by law to report all of his or her assets to the court. This is so the court can seize and liquidate assets, as needed, to pay back some of the debt owed. Things start to get a little hairy when the debtor filing bankruptcy has children who also have assets. The question is, are the children's assets at risk too?
What Happens To Your Child's Bank Accounts?
Being unable to keep up with your monthly mortgage payments is scary, but it's a reality for many Americans. If you've recently begun to receive threats of foreclosure, however, it's important that you do everything in your power to avoid losing your home. After all, there are many ways to go about stopping a foreclosure, depending at what step of the process you find yourself in.
Apply for Loan Modification
Have you filed for bankruptcy within the past few years? If so, then you're likely in the process of trying to get back on your feet financially and working to re-build your credit. After all, a bankruptcy can stay on your financial record for up to 10 years after your filing date. In the meantime, you may be wondering whether or not it's possible to buy a home with a bankruptcy on your record.
Are you considering divorce and bankruptcy at the same time? Like it or not, these things tend to happen at once -- financial problems are one of the leading causes of divorce. Unfortunately, a divorce can complicate a bankruptcy, and the opposite is also true.
Put Your Bankruptcy Either First or On Hold
You have two options. You can either declare bankruptcy first and then complete your divorce or you can put a hold on your bankruptcy to complete your divorce at a later date.