Bankruptcy is an option that must be taken with full awareness of all the consequences. It is a life altering decision and should be a given a great deal of thought. Moreover it is a very tedious and complex process and in order to be fully aware of what all filing for bankruptcy entails, it is best to seek counseling regarding bankruptcy.
There are numerous organizations, both profit and non-profit, that can assist individuals and companies with bankruptcy. They conduct information seminars to educate consumers and will also sit down with you to discuss your financial situation in order to better assist you in this important decision.
Bankruptcy Counseling – What it Entails?
A lot of consumers do not have a clear understanding of the complexity involved in filing for bankruptcy. They are either unaware or ill-advised about the entire process and of the possible consequences filing for bankruptcy. Bankruptcy counseling programs provides the consumer with the following information:
Information – Counseling programs discuss bankruptcy in detail. There is a lot more to it than just signing papers. These bankruptcy counseling programs highlight everything in order to keep consumers fully informed.
Eligibility – There is common misconception among people that anyone is entitled for bankruptcy. In point of fact, not everyone is eligible for bankruptcy. There is a minimum criterion that consumers have to meet in order to be considered for this relief. The requirements are even stricter for business establishments.
Paperwork – Filing for bankruptcy is a very tedious process and involves a great deal of paperwork. Bankruptcy counseling programs familiarize people with the type of forms and documents required.
Restrictions – There are a number of restriction that come during and after filing for bankruptcy that many consumers are totally unaware of. Bankruptcy counseling discusses those restrictions in detail.
New Laws and Regulations – The rules are not the same as they were before. The recent recession and the decline in the U.S economy have paved the way for stricter, tougher regulations making it extremely difficult for any business to declare bankruptcy at will. Bankruptcy counseling programs provide the latest information on what the rules say and what they mean.
Other Options – More often than not, consumers attending these programs learn that they are other solutions to their financial worries instead of filing for bankruptcy. A bankruptcy stays on the consumer’s credit for up to ten years.
Life After Bankruptcy – Life after bankruptcy is not the same as before. In fact it is a lifestyle changing decision. These programs shed light on the lives of people living their life after bankruptcy. This gives consumers a good idea of what they are getting themselves into.
Is Bankruptcy for You – This is ultimately what the entire program is all about. These programs help in determining if one should really take up bankruptcy. No matter how desperate a consumer’s financial situation is, bankruptcy should always be taken up as the last option.
In the end bankruptcy counseling programs are designed to assist individuals in making the right decision even if that means filing for bankruptcy.