Before making the decision to file for bankruptcy, there is some information which you should consider. Even though bankruptcy relieves you from the burden of debt, it will also stay with you for 10 full years by affecting your credit score, making it nearly impossible to acquire low interest loans.
Also, although it is possible to have bankruptcies removed from one’s credit report, the chances are quite slim. This is due to the fact that bankruptcies are court ordered and therefore deemed legitimate credit report items.
Change in Bankruptcy Law
In 2005, a new law was passed that changed bankruptcy proceedings. The Bankruptcy Abuse Prevention and Consumer Protection Act requires that if you plan on filing for bankruptcy, you must get credit counseling 180 days prior to filing. You must also then receive a debtor education course after debts have been discharged.
Both the initial credit counseling and the post debtor education must be provided by government-approved persons. The former lasts approximately 90 minutes, while the later lasts approximately two hours.
Both programs have fees attached which usually range somewhere between $50 and $100 depending on the individual provider, although a waiver can be requested if you cannot pay the fee. You will receive an official certificate after completing each program and the pre-bankruptcy certificate must be submitted to the court before proceedings can commence.
Alternatives to Bankruptcy
If you are seriously in debt then you might consider entering a debt management plan (DMP). This option is completely voluntary and consists of working with a credit counseling organization to help get debt under control.
The other option is to create a budget yourself that will allow you to wrestle your debts into submission. At the same time, you can work on repairing your credit report and elevate your credit score through money management, discipline and creditor negotiations. This path can be more difficult and frustrating, but it will pay off by eventually providing you with a good credit score and better loan options.
Legal Credit Repair Assistance
It can be quite difficult bringing burdensome debt and poor credit habits under control. However, this route is much more desirable than filing for bankruptcy which should be reserved as a last resort.
Should you require credit repair assistance, contact Repair-Credit-Today.com. We provide professional expert credit repair services and a long list of satisfied customers who, on average, see a significant increase in their credit scores within the first 90 days.
Why file bankruptcy and live the next 10 years with damaged credit? Contact Repair-Credit-Today.com and put our expertise to work for you.