Is Bankruptcy right for you?

Reasons to file for bankruptcy

Overwhelming debt
If you are unable to meet your payments each month, and don't see any hope in sight, bankruptcy can give you the breathing room you may need.

Ends harassment
Filing bankruptcy may also stop creditors from filing enforcement lawsuits. After you file bankruptcy, it's against the law for Creditors to initiate or continue lawsuits, wage garnishees, or even telephone calls demanding payments on the items you've listed.† Secured creditors, such as a bank holding a lien on a car, will lift the stay once the bankruptcy documents are filed.

If you own a business
Sometimes a business may find bankruptcy is the answer if it becomes necessary to liquidate and terminate.

Reasons not to choose bankruptcy

Bankruptcy may not solve your financial problems
You know your financial health better than anyone. If, when you consider bankruptcy, you see that you won't be able to exist without using credit to supplement your income, consider other options. After you file for bankruptcy it is harder to obtain credit, especially unsecured loans. It may be wise to make sure you are stable in your employment and living accommodations, before filing bankruptcy, because new employers and landlords sometimes run credit checks.

Your bankruptcy may effect a cosigner or co-applicant
If you have filed a Chapter 7 bankruptcy, the lender can try to collect from a cosigner or coapplicant after your bankruptcy is discharged.

Lack of property and assets
If you have very little in the way of assets, and none of your debts contain cosigners, it's doubtful your creditors will sue you for collection, because even if they were to win, they probably wouldn't be able to collect from you.

A challenged bankruptcy

Your bankruptcy may be challenged if:

• You've run up charges on your credit cards right before you file bankruptcy
• You've taken out cash advances right before you file
• You've changed your spending patterns
• You've consulted with an attorney and he/she has advised you to file bankruptcy, and you have continued to make credit card charges
• You hide assets, income, or other property from the courts
• You transfer cash or property to friends or relatives
• You apply for credit and overstate income or understate debt on the application.

Losing your property

In a Chapter 7 bankruptcy, you may be forced to surrender property that isn't exempt. Be sure to look at all the types of bankruptcies so that you choose the best one for your situation.

Your credit rating

There is no denying a bankruptcy can devastate your credit rating. When you file a bankruptcy, every credit account that you decide to include will become an "included in bankruptcy" account. Additionally, a bankruptcy filing and discharge listing will appear in the court records section of your credit report. Because so many negative items are attached to the bankruptcy, it becomes extremely difficult to remove all traces. Remember, a bankruptcy usually stays on your credit report for ten years.

After the fact

If you do decide bankruptcy is your answer, remember that there is hope for your credit score. Check with www.lexingtonlaw.com for more information.

If you've already filed for bankruptcy

There is hope. Thousands of consumers have learned firsthand how legitimate credit repair firms are a money saving solution to their credit history problems. By disputing items that are inaccurate, unverifiable or misleading, legitimate credit repair firms can work to remove bankruptcies from credit reports.

Lexington Law Firm has helped over 200,000 consumers repair their credit reports for over fourteen years. At Lexington, a staff of lawyers is dedicated to creating a fusion of strict regulatory compliance with innovative solutions for repairing credit reports. In 2004 Lexington legally delete 260,000 negative credit items from their customer's credit reports. This number includes an amazing total of 2,801 bankruptcies.

In accordance with federal regulations, Lexington Law Firm charges retroactively for services performed each month, and the consumer may cancel at any time. Lexington's experienced attorneys are ready to provide quality services at affordable rates. So why wait?

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