Bankruptcy

What Is Bankruptcy?

Bankruptcy is the most extreme course of action you can take to eliminate your debt. Many lawyers pitch it as a quick fix that will wipe your slate clean. In reality, it’s a long process that will affect you and your credit for at least the next 10 years, if not your whole life.

Filing for bankruptcy can be a painful mistake and should only be considered as a last resort. It stays on your credit report for 10 years – time is the only thing that will get rid of it. Job and loan applications ask if you’ve ever filed for bankruptcy and the truth could jeopardize your acceptance. Lying about it is a felony. Even after you file for bankruptcy, you’ll probably be able to get credit or a loan, but it will always have very high interest rates and be considerably more expensive.

The bankruptcy process can take years to get through the legal system, dragging you back for mandatory court dates. You’ll have to explain how you got into debt, your name will go on record in the courts and could be printed in the newspaper. In the end, most of your belongings may be liquidated and your credit will absolutely be ruined.

You can see why bankruptcy should be avoided unless it’s absolutely necessary. However, there are a few cases when bankruptcy is the best option. Our certified credit counselors would be happy to listen to your personal situation and answer any questions you have. Give us a call at 800-994-3328.