Bankruptcy

What is Bankruptcy?

Filing Bankruptcy is a legal declaration of your inability to pay your debts. It gives you protection under a Federal bankruptcy code that can save some assets, keep creditors at bay, and provide you with professional help (for example: an attorney or a court-appointed trustee) to sort out the situation.

Facts about bankruptcy

Although bankruptcy is appropriate for some individuals there are reasons not to do it. The reality is that even after ten years bankruptcy leaves a trail. Every time you fill out a credit application you will be asked if you have filed for bankruptcy which can affect the approval outcome. It may affect your ability to rent or buy a home any time in the future. You will not be excused from certain debts, including Federal Student Loans, IRS debt, and child support. It may also effect the privilege of using credit to purchase necessary items even the ability to make plane and car reservations. Even if the bankruptcy has fallen off your credit report, to answer this question untruthfully is considered a federal offense. For most people filing Bankruptcy is a permanent decision that should only be considered as an absolute last resort to solving your debt matters.

Questions to ask yourself before Filing Bankruptcy:

• Filing Bankruptcy - Do I want to give up my credit for a 7-10 year time period?
• Filing Bankruptcy - Will I ever need to purchase something in the future that would require a credit check?
• Filing Bankruptcy - Will I ever apply for a job that filing bankruptcy will be an issue?
• Filing Bankruptcy - Most of all do I want this to be a part of my credit history for the rest of my life?

Other Bankruptcy Effects:

• Can cost up to $2,500 to file.
• May have a negative impact on your employment status.
• In a Chapter 13, you may end up paying 75-100% of your debts back.
• Will eliminate all of your unsecured debt in a Chapter 7 but difficult to qualify for and you may lose assets such as your home
• May result in higher interest rates on future loans.
• Carries a negative stigma, mental stress, and other burdens.
• Truly a last resort for most people. Bankruptcy should be avoided if at all possible.

Important Information about Bankruptcy and other options

Before you make that important decision dealing with your financial situation, make sure you read over all the facts and understand the steps completely that you are about to take. Our program's goal is designed to keep you from going into bankruptcy with flexible payments and dedicated staff that works with you throughout our program. Your debt will be settled in 18 - 36 months. Bankruptcy can not only be difficult to qualify for but also very damaging to your future credit scores. In most case you might not qualify for a Chapter 7 bankruptcy and as a result it will leave you having to file for a Chapter 13 bankruptcy in which case you will still have to pay some of the debt back to the creditor. On top of having to still pay some of the debt back the bad bankruptcy remarks on your credit report will not start until the debt is paid back. Some individuals have no other choice but to file for a bankruptcy, but there are also other individuals who would fit more comfortably into a debt settlement type of program.

What Next?

Do you have bankruptcy or bankruptcy related questions about how to get out of your current financial situation? Our free consultation can help if you are considering bankruptcy, or just trying to find a way to eliminate all of your high interest payments into one low monthly financially budgeted plan. One of our experienced Debt Consultant will consult with you about your financial problems absolutely free. Either fill out the form including your contact information or call Toll Free: 888-387-3328.