Don’t file for Bankruptcy: How Financial Warranty Can Help

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Dont file for Bankruptcy How Financial
Warranty Can Help
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When you are falling behind on your payments you
may feel overwhelmed, frustrated, and in some
cases even scared because you have no idea how
you are going to pay back your creditors. You may
find yourself considering bankruptcy. But,
believe it or not, bankruptcy can be a smart
financial decision in certain situations.
Bankruptcys designed to give people a fresh
start when they need one. But keep in mind
that filing for Bankruptcy is a serious decision
with serious consequences, your credit rating
takes a big drop and your spending habits may
need to change. Even though bankruptcy will fall
off your credit report after 7-10 years, it is
always better to pay off your debts rather than
file for bankruptcy.
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What is Bankruptcy?
Bankruptcy is a legal proceeding involving a
person or business that is unable to repay their
outstanding debts. The bankruptcy process begins
with a petition filed by the debtor, which is
most common, or on behalf of creditors, which is
less common. All of the debtors assets are
measured and evaluated, and the assets may be
used to repay a portion of outstanding debt.
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Things to keep in mind 1. Bankruptcy is a legal
proceeding carried out to allow individuals or
businesses freedom from their debts, while
simultaneously providing creditors an opportunity
for repayment. 2. Bankruptcy is handled in
federal courts, and rules are outlined in the
U.S. Bankruptcy Code. 3. There are various types
of bankruptcy, commonly referred to by their
chapter within the U.S. Bankruptcy Code. 4.
Bankruptcy can allow you a fresh start, but it
will stay on your credit reports for a number of
years and make it difficult to borrow in the
future.
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Pros and Cons of Bankruptcy

• Bankruptcy carries with it, considerable
  consequences that you need to keep in mind and
  this should not be taken lightly, as Bankruptcy
  can impact your financial future for years to
  come. Here are some advantages and disadvantages
  of Bankruptcy
• Advantages of Bankruptcy
• No longer legally required to repay debt
• The collection calls and letters stop
• No stress over possibly getting sued
• Youre not liable to pay taxes on forgiven debts
• Disadvantages of Bankruptcy
• Bankruptcy appears on your credit report for 7
  years
• May have to repay to 50 of debt if a Chapter 7
  isnt granted
• Negative accounts will show Included in
  Bankruptcy
• Negative accounts still appear on your report and
  hurt your score
• Credit score will drop significantly
• Could cost thousands of dollars to hire a
  bankruptcy attorney
• Will not be able to obtain new credit for years
  after a bankruptcy

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Negotiating with Creditors
Creditors would rather settle a debt with you
than have it discharged in bankruptcy. It may be
easier to negotiate a settlement if youre
already a few months late on the payment. At
Financial Warranty, We assist our clients by
dealing directly with their creditors and
negotiate on their behalf to arrive at a
resolution. A financial consulting company that
can help you resolve your financial obligations
is what you need and this is where we come in.
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Create a Budget to Pay Down Debt
Often, a debtors problems can be resolved by
learning better money management strategies.
Using credit counseling and budgeting, you may be
able to reduce expenses, find new income sources,
and sell assets to pay down your debt. This will
help you learn new strategies that will reduce
your debt now and help you manage your finances
in years to come. Seeking a reputable and
experienced debt relief company is a good
starting point and at Financial Warranty, we
dont give one-solution options, we offer a
variety of money management and debt repayment
strategies, that can give you the assistance you
need to be able to hand your money better.
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Should I file for Bankruptcy?
This depends on your financial situation and what
you are willing to settle for, but Bankruptcy
should only be taken as a last resort if you
absolutely cannot repay back your debts. On the
other hand, if you are facing unpaid medical
bills or other collection accounts, then
bankruptcy is not always the best answer. If you
are undecided, or thinking about what options are
available to you, Financial Warranty is here to
help!
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Contact Financial Warranty
Were a team of professionals who are tired of
debt collectors and banks taking advantage of
everyday working Americans. We use our knowledge
and expertise to help you in determining whether
third party debt collectors are contacting you
validly, acting as your sword and shield in your
fight against those who want to take everything
that you worked for. Phone [phone]
www.financialwarranty.com