You really
shouldn't consider filing for bankruptcy just because you have high
consumer debt.
There are several things to consider before deciding if you should
file for bankruptcy. If your debt to income exceeds 40-50% filing
bankruptcy may be a viable option. Here are some bits of info on
bankruptcies to take into consideration.
**Remember filing
bankruptcy can stay on your credit report for 7 years.
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Things a bankruptcy can eliminate: |
| - Credit
Card Debt |
| - Medical
Bills |
| - Auto
Loans |
| - Utilities |
|
Things a bankruptcy cannot eliminate: |
| - Child
support |
| - Alimony |
| - Student
Loans |
| - Taxes |
Types of bankruptcy are:
Chapter 7:
Allows your to cancel certain debts that you can legally cancel.
Chapter 13:
Usually sets up a payment schedule for debt repayment over a several
year plan. Does not eliminate debts.
**Remember either bankruptcy will stay on your
credit report for 7 years.
Getting credit
after a bankruptcy is going to be difficult, but not impossible.
Probably your best option will be saving some money up and getting a
secured credit card. These types of credit cards require you maintain
a balance in a bank account that is equal to your credit card limit.
Articles publish with permission from 123debt.com.
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