Home Business – Personal Bankruptcy
23. Dec, 2009 
4 Comments
· Chapter 7 Bankruptcy (Straight Bankruptcy) – This method is basically a liquidation of the debtor’s property to pay off unsettled or
outstanding debt. The benefits to this type of bankruptcy are you get to keep your property
necessary for survival (your house, car, clothes and anything considered for your survival). This way of filing is one of the simplest and quickest with no repayment plan. Your credit score will more than likely increase and it only take 5 months to complete this process. In order to be eligible for this, you need have below average income for your area. This filing will be listed on your credit report for a period of 10 years; however, this doesn’t mean that you will not be able to obtain credit within that 10-year period (a big misconception); it usually takes approximately 2 to 3 years to be able to obtain decent credit again as long as you are making good credit decisions within that timeframe.
· Chapter 13 Bankruptcy – Under this filing you will be able to write off you unsettled debt. Debts are restructured to prevent any foreclosure proceedings. The court is basically overseeing a 3 to 5 year repayment plan, which has minimum flexibility and is very rigid. Not all debts can be included with this settlement, such as student debt, car loan, alimony, unpaid taxes or any forms of secured debt listed under chapter 13 bankruptcy laws. Your FICO credit score will not seriously be impacted, but this filing will show 7 years on your credit report. It will be very difficult to borrow money in the future.
Conclusion
Starting a home business will be so much easier when you don’t have your personal finances to worry about. Whatever option you choose to make, you should know your credit will be severely impacted in the beginning. Your credit score is not the sole factor when lenders look into giving you credit…they also look to see how your income compares to your amount of debt. Don’t worry so much about your credit score but consider how you will settle and manage the debt that you are unable to pay on time or just not able to pay. Come up with a plan and possibly one of the 3 options above—stick with your decision and learn from your experience. Time is always the key factor in improving your situation.
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You have great blog and this post is good!
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I appreciate the comment Willie! Look forward to hearing future comments from you.
The writer of http://www.homejobwork.org has written a superior article. I got your point and there is nothing to argue about. It is like the following universal truth that you can not disagree with: Original Universal Truths are much harder to come up with than clever things you have heard your friends say. I will be back.
I appreciate the comment. I do agree with you in regards to original universal truths. How would are situation be if we were to follow the clever things are friends do say? Just a question to ponder. Look forward to speaking with you again.