What is bankruptcy and how will it affect me?

9 comments

1. 

   HEAR TO HELP on March 22, 2009 at 7:02 am

   its a 50/50 do you have way to much debt? credit cards etc……. sometimes when you file its good like when you file they wipe out all debt no collection agencies can contact you but then again you normally have to wait 2-3 yrs to establish credit again talk to a lawyer to way out your options i know several ppl who filed and did them very very good in 1-2 yrs they could buy new vehicles house etc…….

2. 

   lizzgeorge on March 25, 2009 at 7:20 am

   Bankruptcy is where the courts legally wipe away many of your debts when you have so many that you are incapable of repaying. Find a good website (google “what is bankruptcy”) and get the specifics. The most important thing to know is that it will ruin your credit. You may be denied housing if you apply to rent an apartment, or a job if your potential employer does credit checks. Also it will be virtually impossible for you to get a loan of any type, or even a credit card. And if you do then your interest rate will be outrageous. Plus you’re going back on a promise you made to your creditors to repay them.

3. 

   regerugged on March 25, 2009 at 1:29 pm

   Try to avoid it. Your credit rating gets ruined. Credit bureaus will list the bankruptcy on their records for seven years. The chances of getting credit for anything in that time are pretty slim.

   Try using a credit counsellor first. Sometimes debts can be restructured. Unless you are woefully in over your heads, like $100,000 of uninsured medical bills, bankruptcy has to be the last resort.

   Maybe you have some assets you can sell, like a car or a house to raise some cash to pay off bills.

4. 

   Katasha on March 27, 2009 at 5:06 pm

   There are two main types of personal bankruptcy, chapter 7, which wipes out all of your debts and chapter 13, which puts you on a repayment plan to repay your debts through a court-appointed trustee. With the changes in the banktruptcy laws, if you owe a substantial amount of credit card debt and/or are capable of paying at least $100-$150 a month, you will be required to file chapter 13. If you are shown to not be able to pay anything a month and have a minimum of credit card debt, then you can qualify for chapter 7. A chapter 7 bankruptcy will remain on your credit for 10 years and a chapter 13 bankruptcy will remain on it for 7 years.

   The courts will require you to list all of your debts and all of your assets and property. In some states, you’re not allowed to keep things like personal computers or recreational vehicles/sporting goods. Any items like that can be taken by the courts and sold and the money applied towards your debts. You’re allowed a certain dollar amount in exemptions to keep for normal personal property like furniture, clothing, household goods, etc. as well as a car and usually your house.

   You should speak to a bankruptcy attorney in your area to find out the laws in your state and the guidelines for your particular situation. Most have a free initial consultation.

5. 

   Alex K on March 30, 2009 at 5:25 am

   Here are a few resources on the topic. Hope they help you understand it better.

6. 

   Gillian G on March 30, 2009 at 3:32 pm

   Bankruptcy is an absolute last resort when you have debts that you cannot possibly repay. The new laws make it difficult to use bankruptcy to simply walk away from debt. However, if you are being harrassed by creditors or have problems meeting your commitments then bankruptcy can be an answer.

   In your situation it will pay you to do your own research as there are alternatives. There’s a websiste here which has an explanation of what’s involved. I hope this helps you.

   Good luck!

7. 

   uss_nicky on April 1, 2009 at 7:18 am

   bankruptcy was the best decision i ever made. it really did wipe the slate clean for me. after being discharged, you may have to pay a deposit on things like utilities or cellphones, deposits are normally refunded in a year provided you have good payment history (as was my experience) and this benefits your credit score. within a year of being discharged, with no job being a stay at home mom, i got an unsecured credit card, capital one, if you can’t get unsecured, get secured. don’t rack up the bills but have some kind of revolving credit, like a credit card, car loan or mortgage. i’ve been discharged for 2 years, and i have better credit now than i did before i filed. you can normally rebuild your credit within 2-3 years provided you are on-time will all your payments and don’t overextend yourself.

8. 

   Robert on April 3, 2009 at 5:16 pm

   If you decide that bankruptcy is the course for you, make sure you have a lawyer handle it for you. Some people try to do it themselves and find that they end up in a worse position than they were in before.

   And as for the claim that a bankruptcy has to stay on your credit report for 7 – 10 years, that is absolutely NOT true. The day after your bankruptcy is discharged, you can have all of the information removed from your credit report and start fresh. There is no law anywhere in the United States that requires information about you be reported for 7 minutes, much less 7 years. Most people think that it has to stay on their reports but the FCRA does NOT say this. It states that the information CAN be reported for up to 7 years but does not say it MUST be. If more people knew the truth about how credit is reported and what is legal and not legal, the credit bureaus would be out of business in a day and people’s lives would stop being ruined by them.

   If you have any questions regarding credit issues you may contact me at

9. 

   K.S. on April 6, 2009 at 3:13 am

   I would suggest you read the article “New Bankruptcy Law – Where’s The Consumer Protection?” you can view it at:

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