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When faced with overwhelming debt, many creditors automatically feel there is no other option, but to file for bankruptcy.
In some cases, bankruptcy may be the only answer. Declaring bankruptcy can cause severe credit problems for seven to to years, and in some cases, longer. Regardless of well you manage your credit after filing bankruptcy, your credit worthiness is negatively impacted.
Every time you apply for credit you will either be denied or, if approved, subjected to higher interest rates.
There are two types of Personal Bankruptcy:
Chapter 7. You are asking the courts to discharge all your debts. In exchange, you give up your personal property, which may include items that are already paid off. Some debts cannot be discharged in a bankruptcy proceeding. (varies from state to state)
Chapter 13. Allows you to set up a court-approved plan to repay your debt, usually over a 3-5 year period. Under Chapter 13 you keep your property, and your creditors "typically" accept a reduced amount.
Bankruptcy may be a quick fix today, but it could have very long-lasting implications. Let our courteous, friendly counselors present you with all your options.
Become debt free!
