Bankruptcy

If you're having financial difficulties and you're thinking of bankruptcy as a way out, consider these facts first......

  1. When you file for bankruptcy, it stays on your credit report for up to TEN years.
  2. Bankruptcy does not wipe your credit slate clean and give you a "fresh start".
  3. You'll have difficulty getting future credit such as mortgage loans, car, education, credit cards or personal loans.
  4. Any credit you get will probably cost you more in terms of interest rates and fees charged.
  5. Alimony, child support, and most taxes survive bankruptcy and will still be owed.
  6. Bankruptcy can affect your ability to get a job, since many employers may obtain a credit report when assessing job qualifications.

There are options other than bankruptcy... Before you make a decision that will affect your financial health for the next 10 years seek the professional advice of a financial counselor. Investigate the alternatives, and don't lock yourself into bankruptcy. Bankruptcy may seem to be a good idea now, but it could be very costly if credit is needed in the future. There are a number of alternative ways to fix your finances without risking your credit rating. Consumer Financial Counseling of Tidewater will assist you with a viable alternative to bankruptcy through a Debt Management Program. We can talk to your creditors and help reduce your monthly payments, interest charges, and harassing phone calls from creditors.