Avoid Bankruptcy
Let our friendly, personal financial counselors assist you with debt counseling and offer advice before, during or after bankruptcy. We can help you avoid bankruptcy and create a workable budget that you can stick to.
Is Bankruptcy an Option
In most cases, bankruptcy is not the only option you have. In fact, it may not need to be an option at all. This event is listed as the top 5 life altering negative events that a person can go through. If you are considering this, please call us first. We can put a plan in place to eliminate debt, to reduce stress, to stand by your side and help you through this tough time.
A few disadvantages of bankruptcy:- Ruined credit history: Bankruptcy creates ultimate damage to one's Credit history. It remains in the Credit report for 10 years from the date it was discharged. Not only that, it also stays in Court Records for 20 years. The worst part of this is that it reduces the chances of getting loans and jobs in the future as creditors and employers judge a candidate first hand through their credit report.
- Property repossession: Declaring bankruptcy can result in losing valuable assets (non-exempt property) or equivalent cash value. You may need to part with your most treasured property.
- Stained social status: Personal bankruptcy can spoil your social status.
- Damaged business: Filing of bankruptcy by a business owner can shatter all chances of a growing business. The damaged credit rating due to bankruptcy will not make him qualified for business loans.
- Serious financial crisis: After declaring bankruptcy, you can expect your bank accounts and credit cards to be closed. Anything you may be leasing or buying such as a car will be immediately returned to the owner. This can give birth to tremendous financial crunch.
- Hampered aspects of life: People who have declared bankruptcy may find it extremely difficult to buy or even rent a home; acquire insurance, security clearance and buying or leasing a car.
Types of Bankruptcy
Bankruptcy is really a process, set up by federal law that is supposed to give you a clean slate by canceling all of your debt. Creditors are then able to get any money owed to them that debtors can afford. While there is usually immediate relief from creditors, there is a lifetime of pain that can follow.There are two types of bankruptcy:
- Chapter 7 Bankruptcy, which is total bankruptcy, stays on your credit report for 10 years.
- Chapter 13 Bankruptcy, more like a payment plan, stays on your credit report for 7 years.
