Often, people in debt consider bankruptcy, but they may not understand the consequences of this huge decision until it is too late.
You may feel forced to choose bankruptcy, due to the feeling of hopelessness and harassment by creditors and collectors.
Bankruptcy may seem like the light at the end of the tunnel, offering an end to harassment and to the debt merry-go-round, but it can be very traumatic.
Bankruptcy is devastating to your credit. Many lenders won't look any further when they see your big secret in black and white on your credit report. A
Chapter 7 bankruptcy can be reported for 10 years, and a
Chapter 13 bankruptcy for 7 years. And that is just the bankruptcy itself. Although the debts you include in your plan may be reported as "discharged in bankruptcy", they may continue to be visible to anyone checking your credit.
Like any other option, there are good and bad sides to bankruptcy. However, this particular choice offers many more negative effects than positive.
There is a better way! By using our
debt relief through debt negotiation services, you won't be stuck in the "lifetime plan" outlined above. Instead, we'll help you eliminate your debt in the quickest manner possible so you will have a fresh start!
Upcoming changes in the bankruptcy codes could make it even more difficult.
Congress is working on passing legislation that will keep many people from filing for Chapter 7 bankruptcy, and will instead force them to enter a
credit counseling program. The proposed law will also make it harder to discharge some types of debts, including
credit card debt. The credit card industry has lobbied hard for this change in law, and as a result it has been written to the advantage of creditors and to the detriment of debtors.
