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You have medical bills, child support payments and are receiving your eighth phone call today about your utility bills. Bankruptcy is becoming as heavy on your mind as the debt collectors are on your back. Though bankruptcy will relieve you from your debts and provide you with debt collection freedom, you should be aware of the pitfalls associated with bankruptcy.

Credit reports will carry the details of your bankruptcy for up to 10 years in time. This information is released as public knowledge and can be shown to your friends, family and co-workers through the newspaper. You must have money for a down payment and secure income in order to be qualified for a home loan after bankruptcy. Some employers require credit reports for job position qualification. All of these concerns are involved in bankruptcy. You may not be able to purchase a home and you may lose out on a wonderful job position due to a single choice.

There are other options to debt freedom other that bankruptcy. Choosing debt consolidation can save you time and money as well as relieve you from debt credit harassment. Your credit cards and unsecured debt (utility bills, medical bills, etc.) are consolidated into one monthly payment that is set up according to your specific budget. This method can lower or eliminated high interest rates and stop both late fees and over the limit fees. You can gain your financial freedom back and not put a large blemish on your credit report.

Though bankruptcy can be the option for some debtors, it is best to speak to both a bankruptcy attorney and a debt consolidation representative in order to have your financial situation reviewed by professionals, and to have the best information available to make the proper choice. Avoid credit woes and possible pitfalls by learning about all of your debt assistance choices.

Many people who consider bankruptcy are afraid that they will lose their personal possessions as a result of the bankruptcy. It is always best to research and speak with a bankruptcy attorney regarding your specific situation when it comes to filing. Each case is different and must be looked at individually by a trained attorney that can clarify any rules or regulations that are involved with your case. In most cases, you should not have to give up your possessions as a result. Many times a law will allow for a considerable number of property exemptions that allow you to remain in control of your affects. The state's laws throughout the course of the bankruptcy case protect your property.

Every case is different and each state has its own laws regarding bankruptcy. The courts will look at your individual case and decide whether you should be able to claim the exemptions as state or federal exemptions, and this decision will determine the types of property that you are allowed to remain in control of. Many states will allow you to claim the exemptions that will allow you to keep more property, while other states allow you make the decision as to which federal or state exemptions that you would rather use. Since you may have the option of which exemptions you would prefer, it is a good idea to research the various exemptions on your own for your state and its laws, before you start the proceedings for your bankruptcy. By researching your possibilities, you are eliminating any chance of being surprised with varying possibilities once you have started with the bankruptcy process.