The Pros and Cons
Bankruptcy is a legal process which allows you to have certain types of debt cancelled by a court order. This means that you no longer owe money on those particular accounts. It’s as if these debts never existed.
Two Types of Bankruptcy
Typically there are two types of personal bankruptcy: Chapter 7 and Chapter 13.
If the amount of your debt is so disproportionate to your current and anticipated income, you may want to consult a bankruptcy attorney to help you understand your legal options so you can determine if bankruptcy is a viable option for you.
While making your decision, you should be aware that there are some disadvantages to filing bankruptcy:
• A personal bankruptcy can remain on your credit report for ten years
• Sometimes bankruptcy information can be provided for the rest of your life, such as when you try to
apply or a mortgage or other type of loans for more than $50,000
• Often bankruptcy is not looked upon favorably by potential lenders and creditors. Concern can persist
about your ability and willingness to pay down your loan payments fully and consistently.
An Alternative to Bankruptcy
Joining a debt management program can be an effective alternative to filing bankruptcy. We can help you here at Debt Counseling Corp (DCC).
DCC is a non-profit organization designed to serve consumers like you who are in debt and who would like to avoid bankruptcy. When you join the DCC program, you will have lower interest rates, often lower monthly payments, and a workable financial plan that will help you become debt free. DCC is licensed and bonded in several states. We are BSI registered and ISO 9001:2000 accredited.
DCC is committed to helping you help yourself. The majority of our clients can avoid the sting of bankruptcy and enjoy debt-free living.
<-- back to article index
