RULE #5

“Bankruptcy” is a last resort. You may lose a lot of ground.

Bankruptcy could be the last “Chance” card you play if you get in over your head. Or it could have a monopoly on your future if you aren’t careful.

It’s not an easy way out.

Filing for bankruptcy is no guarantee that it will be granted because a court judgement must be made. Even if all you do is file your bankruptcy papers with the court, it gets reported on your credit profile.

Not all debts are included in bankruptcy.

Things like alimony, child support, student loans and taxes secured by liens still must be paid consistently.

Bankruptcy remains on your credit profile up to 10 years.

While a declaration of bankruptcy removes many debts, any reference to filing, dismissal or discharge still appears on your credit profile: up to 10 years for chapter 7, up to 7 years for chapter 13. During this time, you’ll find it more difficult if not impossible to get a new mortgage, personal loan, or a credit card.