What’s the reasoning in filing bankruptcy since I am making my payments?

The reasoning behind filing now is because the amount of foreclosures and job loss people everywhere are experiencing while having their credit ruined is larger than usual and it is affecting all social classes. The person that continues to struggle to make payments on credit card debts that will take more than 30 years to pay off is only hurting themselves. It is best to go ahead and file bankruptcy during a bad period in the economy and ride in the good times with decent credit then to suffer to making min payments and not putting anything away for retirement. For the cost of 1200-2500 in bankruptcy attorney fees you can file for bankruptcy and keep your house, cars and boats and begin building a more secure foundation from which you can enjoy your life.

What could I lose if I file Bankruptcy?

This is always the first question due to the fear of the 2005 bankruptcy reform bill. This question can only be answered by looking at your case specifically. The first things they will look at are your total net worth and compare your debts. Therefore, if you have allot of equity and your trying to file a chapter 7 bankruptcy you could be forced to sell your home. However, with all the housing prices this is doubtful. In addition, you are allowed to exempt a certain amount of equity whether it is in a car or home. You then have the opportunity to reaffirm your debt which means you legally agree to continue to be accountable for what you owe after bankruptcy. If you want to keep your home and car and you owe money then you would reaffirm your debt.

With all the foreclosures credit defaults it is the perfect time to file bankruptcy and begin by rebuilding your credit so that when the recession ends you have built up your credit to get the best rates possible for cars and homes when want to buy again. In addition, it is the perfect time to start building your retirement portfolio as the market rebounds.