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DEBT MANAGEMENT SERVICES
The Truth About Bankruptcy
Every day at Family Credit Management Service, our credit counselors talk with people who are thinking about, or have filed bankruptcy. Many callers filed several years ago and now want to "fix" their credit report. Credit reports cannot be "fixed".
Fast talking bankruptcy lawyers did not tell them the whole truth. They emphasize the "quick fix" which is not true and may not be in your best interest.
Bankruptcy is a mistake that, for most people, will follow them for the next 10 years and in some cases even longer.
What the Lawyer Fails to Mention
- Bankruptcy will stay on your credit report for 10 years.
- When you apply for a job, a potential employer can check your
credit report to assess you. You may not get the job or you may
have to answer some embarrassing questions.
- Future lenders will view the bankruptcy filing negatively. This means
you will have difficulty obtaining a loan to buy a home or a car.
- Bankruptcy lawyers may tell you that you can obtain credit after you
file bankruptcy. In some cases that may be true. What they do not
tell you is that, any credit that you are able to obtain will have
extremely high interest rates and fees.
- Bankruptcy does not wipe your credit slate clean, nor is it a quick fix
that gives you a fresh start like the slick lawyers tell you.
Benefits of a Debt Management Program
- By enrolling in our Debt Management Program, you have taken a very
positive step. Future lenders will know you are willing to take
responsibility for any credit you obtain.
- You are fulfilling a moral and ethical obligation. Lenders gave you
credit and you agreed to repay them in full.
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