Posted by: Srividya Srinivasan
Filing bankruptcy represents starting over to some people. Why not start with a clean slate? Because it destroys your financial life let alone your personal life. Bankruptcy should not be a word that is taken lightly. The benefits of bankruptcy are your debt-to-income ratio is reduced, no more harassing calls from creditors, and you can start building up credit immediately after filing. However, the so-called benefits come at a great cost. Filing total bankruptcy affects your credit report and is kept on record for 10 years. Even after this time frame, a bankruptcy past can follow you for the rest of your life. When applying for a loan, it is common to question about past bankruptcy filings. If saying no because it is beyond 10 years, it is still considered fraud.
Most bankruptcy cases can be avoided, and if it is possible, it should be. With help from financial counselors and extensive amputation of excess stuff, eliminates the painful process of bankruptcy. With the help of creditors, debit collectors, and family and friends, as well as selling assets, the option of filing for bankruptcy might no longer have to be an option. As said in an article DaveRamsey.com about the experience of bankruptcy, foreclosure, and lawsuits, “Been there, done that, got the t-shirt, and it is not worth it”.
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