Do I Need Help?
What is Bankruptcy?
There are two types of bankruptcy, Chapter
7 and Chapter 13.
Filing for a Chapter 7 bankruptcy means you are asking the courts
to completely discharge your debts.
Filing for a Chapter 13 bankruptcy is when you
set up a court- approved plan to repay your debts.
Bankruptcy can negatively impact your credit history
for as much as ten years. Bankruptcy also can be reported for life if you apply
for a job, loan, or life insurance; it is not the "quick fix" it is advertised to
be.
Your debt might dissolve overnight, but the emotional
effects can last a lifetime. The limitations and embarrassment caused by declaring
bankruptcy is rarely worth it. It is difficult to predict what opportunities you
may be denied because of a damaged credit rating, for example, the purchase of a
home or a business.
The Chapter 7 bankruptcy filing takes approximately
3 to 6 months. When filing you must disclose the following personal information
to the courts:
1. Property and income
2. Debts and living expenses
3. Property you claim to be exempt
4. Property transactions for the two years prior
to filing
When filing a Chapter 13 bankruptcy you commit to
partially paying off your creditors over a 3 to 5 year period, but the bankruptcy
may remain on your credit report for up to 10 years after you make your last payment,
ruining the chance for you to get credit and loans.
These "easy answers" are not the best solution to
getting out
of debt and back on track. Today, society looks for the "quick fix"
and these options are promoted as immediate help, but the effects can last for years.
For additional bankruptcy education please
click here.
