Saturday, April 4, 2009

The Truth About Bankruptcy



By Nicholas Hall

Many people think that upon filing bankruptcy they can simply start over, that it is an easy fix to a complex and terrible problem. However, the truth is bankruptcy is life changing and can cause life long damage; it can devastate your job, destroy your marriage, and steal your peace of mind. Bankruptcy is not something that should be recommended any more than a divorce, it is a long painful process that does not leave you with a clean slate.

Bankruptcy is listed in the top five life-altering negative events that people can go through, along with divorce, severe illness, disability, and loss of a loved one. That certainly doesn’t make it sound like a walk in the park. Chapter 7 bankruptcy stays on you credit report for ten years which makes it almost impossible to get a loan or find a job for that period of time. Chapter 13 bankruptcy is more of a payment plan, but it still stays on your report for seven years. However, even though there are number associated with these filings, bankruptcy is a life long smear on you credit and finances. Anyone has the right to ask if you have ever filed bankruptcy, whether it appears on your credit report or not.

It is a better idea to try and take a few steps back and get on to solid ground financially and work your way back up. Bankruptcy is the easy way out, but it still takes way too much. Unless in extremely dire circumstances it is better to work out your problems in normal fashion, by spending less and working hard to pay back your debts.

Sources:
http://www.debtsteps.com/how-to-avoid-bankruptcy.html

http://www.daveramsey.com/the_truth_about/bankruptcy_3018.html.cfm

http://www.debtconsolidationcare.com/avoid-bankruptcy.html

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