The Truth About Bankruptcy: It’s All Here – The Good and Bad

by Lynnette Khalfani-Cox, The Money Coach on October 16, 2012

in Bankruptcy


Bankruptcy isn’t a step that should be taken lightly. But sometimes, it’s a necessity that simply can’t be avoided.

If you’re overwhelmed by enormous credit card debts you can never repay, struggling with massive medical bills, or are barely staying afloat due to unemployment, bankruptcy may be a good alternative to consider.

Will a Chapter 7 or chapter 13 bankruptcy hurt your credit rating? Absolutely. But probably not as much you think.

And even though a bankruptcy filing does generally stay on your credit report for 10 years, you can recover from bankruptcy far, far sooner than that — sometimes in as little as two years.

None of this is to suggest that bankruptcy is a magic bullet for whatever ails you financially. It’s not.

So if you do decide to file for bankruptcy protection, it’s vitally important to go into the process with your eyes wide open, fully aware of the pros and cons associated with taking this major financial step.

Here is our handpicked selection of recommended articles on the topic of bankruptcy.

Chapter 7 Bankruptcy Explained

Chapter 13 Bankruptcy Explained

The Truth About Bankruptcy: Why All Your Debts WON’T Go Away

Considering Bankruptcy? Avoid These Common Mistakes Or Your Bankruptcy Filing Will Be Rejected


How Long Will a Bankruptcy and Foreclosure Stay on My Credit Report


Can I keep my car if I file for bankruptcy protection?


What If I Change My Mind After Filing Bankruptcy?


Recommended Resources

Below are a couple of websites you should visit if you are considering filing for bankruptcy protection:

US Courts.gov

The Bankruptcy Law Network

This Article Answered The Following Money Questions:

  • can you recover from bankruptcy sooner than 7 years

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