Bankruptcy is Not the Way Out
by Ka Lee Angel Lee
In the state of jobs drying up and increasing mortgages rates, more people are taking on credit card debt to bridge these gaps. As debts accumulate, people are having a hard time paying their creditors back. To get out of debt, a lot of people will look to file bankruptcy hoping to get rid of their debts. However, this is a deep hole you are stepping in and you never know when you can get out of it.
The reason why we should avoid bankruptcy is that bankruptcy can badly hurt our credit score by about 200-250 points and stay on our credit report for 7 to 10 years which make us almost hopeless getting new loans or credit in the near future. Even worse, you may not even be able to rent a car. Nevertheless, you may lose your properties and creditors may repossess properties that they hold a lien unless you have federal/state exemption. Last but not least, your retirement savings may be taken to pay off your debts because there is a limit to how much retirement savings is protected under the laws.
Declaring bankruptcy is not a way out when we are in debt. It is more like letting others to control and reassign our assets from then on. It is not going to get us more freedom. In the situation of deep debt, we should seek debt help services like debt settlement and consolidation programs. Look for experts’ advice and make decisions appropriately.
In the state of jobs drying up and increasing mortgages rates, more people are taking on credit card debt to bridge these gaps. As debts accumulate, people are having a hard time paying their creditors back. To get out of debt, a lot of people will look to file bankruptcy hoping to get rid of their debts. However, this is a deep hole you are stepping in and you never know when you can get out of it.
The reason why we should avoid bankruptcy is that bankruptcy can badly hurt our credit score by about 200-250 points and stay on our credit report for 7 to 10 years which make us almost hopeless getting new loans or credit in the near future. Even worse, you may not even be able to rent a car. Nevertheless, you may lose your properties and creditors may repossess properties that they hold a lien unless you have federal/state exemption. Last but not least, your retirement savings may be taken to pay off your debts because there is a limit to how much retirement savings is protected under the laws.
Declaring bankruptcy is not a way out when we are in debt. It is more like letting others to control and reassign our assets from then on. It is not going to get us more freedom. In the situation of deep debt, we should seek debt help services like debt settlement and consolidation programs. Look for experts’ advice and make decisions appropriately.
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