Is Bankruptcy A Good Way Out of Debt?

By, Meredith Anderson

Bankruptcy as always been seen in both a positive and negative way. The word its self might make people scare people. There are two types of common bankruptcy that people file for, Chapter 13 and Chapter 7. Chapter 7 in a sense wipes you clear of your debt and you get what’s known as a “fresh start”. Chapter 13 allows you to set up a five year payment plan. Last Year alone 445,574 cases were filed of Chapter 13. Some people hear bankruptcy and think of it as a relief and a way out rather than a scary thing that will haunt you forever. So the real question is whether or not bankruptcy is the way to go when it come to getting out of debt
The truth is that bankruptcy will give you a sudden relief from your responsibilities, however does follow you for years if not your whole life. Bankruptcy can stay on your credit for up to ten years and will stay on your public record for life. When applying for a job or credit, if asked you must by law state you have filed for bankruptcy. This itself hurts your opportunity to move forward and it becomes harder to take out any loans if you are strapped for money. So when thinking about getting out of debt, bankruptcy might not be the way to go.

Sources:

http://www.daveramsey.com/the_truth_about/bankruptcy_3018.html.cfm
http://money.cnn.com/2005/04/20/pf/bankruptcy_bill/index.htm
http://www.cleardebtsolution.com/Bankruptcy.php