Why the discussion of bankruptcy and bills? It's a modern day fable
that bankruptcy debt relief is the answer to all your problems, especially if you
cannot afford to pay your bills.
Because all too often in American culture there's almost a myth surrounding the rich and how they only got wealthy by declaring bankruptcy at least once and then fighting their way back to the top, as though if you haven't gone bankrupt at least once you weren't really trying hard enough to get rich!
Unfortunately, this casts a positive glow on something that can have a tremendously detrimental effect on your life; because whilst it's true that some people who have succeeded have been forced to declare bankruptcy, and have successfully recovered from it.
The truth is that it casts a blight on your financial
future which will literally take years to overcome as you reflect on
the role that bankruptcy has had on your life.
Bankruptcy Debt Relief companies exist to sell high interest debt consolidation loans. They are not a public service, and despite all the smiling people on the adverts, coping with debt even on these programs is still one of the most stressful experiences you will ever live through.
When you owe a credit card company or a bank money they
do not write it off, forget about it or put it down to experience. They
will send a debt collector around to your house to bang on the door and
collect their money. If you have no money then they will seize your
property and sell it. And if you still don't have enough then you may
have to declare bankruptcy.
At this stage you may think your problems are over, but in truth they are just beginning.
You are now officially a financial pariah. You will not be able to get credit anywhere. Your credit score will fall through the floor and you will suddenly find that the cost of even everyday essentials like home insurance or car insurance will shoot up by as much as 50%, because so much of the insurance companies rating system is sensitive to whether someone has a good or bad credit rating.
Yes, it can. It will be some time before a mortgage company will touch you if you have been declared bankrupt. Even if you are on some kind of bankruptcy debt relief plan it is not going to help, because this shows up on your credit score and is an immediate alarm bell to every financial institution NOT to lend you money.
Bankruptcy is NOT an easy option, so think long and hard before taking your bankruptcy and bills through this route if you want to buy your first home.
Consider repairing your credit yourself before choosing to file bankruptcy. How To Do It Yourself Credit Repair explains all the steps to improve your credit yourself.
Do you have more questions on this subject? Have a Question provides an awesome option to ask more questions.
Disclaimer: This information is not provided for legal advice or opinion, but is for general information only. Since laws vary from state to state, seek the help of a professional in your area for any legal advice.
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May 24, 18 01:21 PM
Credit Repair law firms abound. All claim to specialize in credit repair. I may get sued for writing this, but it’s my opinion that credit repair law firms are scams.
Mar 26, 18 03:08 PM
Due to cost of living, property cost, and housing my husband (retired Navy), myself (retired wife) and 25 yr old son live together and have for over 5
Mar 26, 18 02:33 PM
I am wanting to purchase a small single family home for myself and I don't make a whole lot. I read about the debt to income ratio and I'm good on that.
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