The Top 5 Reasons To Avoid Bankruptcy

Posted by on Aug 16, 2012 in Uncategorized | 0 comments

When the creditors have come calling and the world seems at its end, the stress can be hectic. Bankruptcy can seem to be one of your only options. Rather than succumb to that pressure it’s important to remember 5 reasons to try and stay out of bankruptcy.10 Years: Bankruptcy may seem like the way to go in the moment, but the fact is that a Chapter 7 total bankruptcy stays on your credit report for 10 years. Do you know where you’re going to be in 10 years? If you are now 27, do you know where you’re going to be when you’re 37? Can you even imagine that far out? 10 years is a long time and there are many reasons why this 10 year rule should be remembered.

Home Loan: Even if you are able to attain a home loan after you have gone through a bankruptcy you likely won’t get very favorable terms for your loan. You will probably be paying too much in interest and this could cost you tens of thousands of dollars more over the life of the loan.

Rental Restrictions: Say you are just going to continue to rent; having that bankruptcy front and center on your credit report will not speak well of your worthiness to rent. You may be asked for more money for deposit, to pay a higher rate, or you may be denied outright.

Job Placement: Your bankruptcy can even invade your career search. It may not be relevant but if you are working somewhere with sensitive information or if you are handling cash and you have a bankruptcy on your record you are a lot less likely to be as trusted as you should be.

Debt Relief Programs: One of the smartest things many people considering bankruptcy overlook are debt relief programs. These debt relief programs don’t come with many of the caveats listed above. When you participate in debt relief programs your credit score is not hurt the same way as with bankruptcy. Employing debt relief programs also shows all who would investigate your credit report that deeply that you are responsible and that you don’t just walk away from your debts.

Bankruptcy is an extreme end and is not something which is cut out for everyone. Lucky for you there are other options to consider like the debt relief programs from trusted debt relief sources.

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