Has the economy done a number on your checkbook? You aren’t the only one. Unemployment rates remain high, foreclosures abound, and you can find a hard luck story on almost any street corner. So how do you dig out of this mess? A lot of good people have decided the road to any future might well be bankruptcy. Not a pretty road; but one that might help you pull your life straight and help you move forward. But the bankruptcy process can be long and confusing. Is it worth it for you? You will only know if you learn enough about it make an informed decision. There are 4 rules you need to understand before you file for bankruptcy:
1. Any bankruptcy can remain on your credit file for 7-10 years (or longer). If your credit score is currently good, you have more to lose by filing.
2. Most credit card providers will shut down your credit cards. The good news is any debt you owe them will be taken care of by the bankruptcy process.
3. Federally backed student loans most generally can’t be discharged. However, private student loans can.
The bankruptcy option you choose may help or hurt you depending on your personal situation, including how many assets you still have. It’s a good idea to get an attorney (or at least consult with one) as you pursue a bankruptcy.
1. Any bankruptcy can remain on your credit file for 7-10 years (or longer). If your credit score is currently good, you have more to lose by filing.
2. Most credit card providers will shut down your credit cards. The good news is any debt you owe them will be taken care of by the bankruptcy process.
3. Federally backed student loans most generally can’t be discharged. However, private student loans can.
The bankruptcy option you choose may help or hurt you depending on your personal situation, including how many assets you still have. It’s a good idea to get an attorney (or at least consult with one) as you pursue a bankruptcy.
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