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Is It The Right Time For You To File For Bankruptcy?Filing for bankruptcy is an option sought by many people each year. However, since the bankruptcy law was amended in 2005, additional procedures have made filing for  bankruptcy and getting approved for bankruptcy more difficult than ever.If you’re currently experiencing serious debt problemsand is contemplating about  bankruptcy, the question is, is it really the right time for you to file for bankruptcy? Hereare some pointers you should know about bankruptcy filing.
Should I File for Bankruptcy?
Have you considered other options apart from bankruptcy? Your debt situation may not be as bad as you think and if you seek the proper help, you may be surprised to find thatthere are better alternatives to the problem. Under the new bankruptcy law, consumersshould first complete a credit counseling course six months before filing.The government has assigned accredited credit counseling agencies that consumers canrun to for their debt issues. Upon completing the counseling, if filing for bankruptcy isrecommended, then that’s the time you should start preparing your bankruptcydocuments. Otherwise, you would be advised to take on other possible debt solutions.
Filing for Bankruptcy
Unlike the past years, consumers were able to file their own bankruptcy applications.Today, the government requires bankruptcy applicants to prepare their documents withthe assistance of a professional bankruptcy attorney.Your bankruptcy attorney must ensure that all details and information that will be enteredto your application are true and correct. Any false information provided is a federaloffense so you need to be very careful on filling up your bankruptcy forms.
The Qualification Income Means Test
After filing your bankruptcy application, what’s next? Applicants used to have the optionto choose on which Chapter of bankruptcy to request. Today however, an applicant willneed to undergo a Qualification Means Test to determine whether his monthly incomewill qualify him for a complete release from his creditors or not.Chapter 7 bankruptcy is what most applicants prefer because this type of bankruptcycompletely releases them from all debts from their creditors. Nevertheless, if anindividual fails on the means test calculation, he will be subjected to a Chapter 13 bankruptcy. This chapter requires an individual to submit to a repayment program thatwill be set by the bankruptcy State court. This means, a percentage of money will beautomatically deducted from his income each month as repayment for his debts.
The Consequences of Bankruptcy
Don’t forget to consider the consequences involved in bankruptcy. For the next sevenyears, your record of bankruptcy will be reflected in your credit report. This can place a
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