Tangible effects are apparent and could be seen on your credit profile, but what most people would not be able to anticipate is the fact that bankruptcy snatches away your peace of mind too. Research indicates that bankruptcy is voted as one of the top five life altering events. Divorce, losing someone you love, a prolonged illness or disability, are some things that are comparable to filing for bankruptcy.

Options in Front of You

If you are vacillating whether or not to file for bankruptcy, the optimal starting point would be to look out for options that can help you circumvent choosing this dreadful option. The alternatives include, but are not limited to,: seeking financial assistance from someone you know, selling or refinancing some of the tangible assets like real estate, shares, bonds, or jewelry that you may own. Sign up for debt consolidation or consult a debt management company. Leave no stone unturned.

Make a Wise Decision

If all your endeavors yield no positive or palpable results, the last thing to do is to become prepared for the worst with the right frame of mind. The reason is, a small fragment of people who went ahead with this decision came out with flying colors. However, such examples are rare. If filing for bankruptcy is the only route you are left with, ensure that you have enough money to pay your bills as a non-payment will push you back into the same vicious cycle again.

A Stronger Future

Irrespective of what decision you make, financial peril and being in financial doldrums needs to be dealt with, with patience and exuberance. Ensure that whatever decision you make; you do not repent on it. Support your position, after all, you considered and researched every open door. Focus on rebounding with strength, resolution, and conviction.

Irrevocable Damage to Your Credit Profile

Undoubtedly, a tarnished credit profile for several years is the biggest setback you suffer after filing for bankruptcy. As soon as you file for Chapter 7 bankruptcy, the blemish will persist on your credit profile for a decade for sure. It is a very lengthy period for a blemish to exist, and the repercussions will be felt throughout your lifetime. If you think Chapter 13 bankruptcy is a better option, you are mistaken again. The record stays onto your credit profile for at least seven years with effects lasting longer than expected. If you are scouting for a loan or a job, you invariably have to declare that you have filed for bankruptcy in your life time, well, at least within those 7 years – perhaps more though. Of course if it is not asked about, then you do not or should not volunteer such information.

Moreover, if you fail to do so and whether or not you filed for bankruptcy is asked, you can be charged with a crime if the financial background check is conducted and the employer sees that you attempted to deceive them via your application. And even if you are honest about this dark fact, in terms of lenders, they will probably shy away from extending you any type of financial assistance and if they do, special conditions may exist with most likely much higher interest rates.

James S.
December 2009

Geisela
January 2009

Vince P.
January 2009

Mark V.
February 2010

David D.
February 2010

Clarissa M.
October 2010