Topic Bankruptcy: Is Bankruptcy the Right Solution for You?
Filing for bankruptcy is a drastic measure but sometimes you don’t have any other choice.
Bankruptcy information stays on your credit report for up to 10 years.
Bankruptcy is a legal way to discharge your debts, but filing bankruptcy will have the most negative effect on your credit score.
It’s always in your best interest to make sure that information about the filing are reported to the credit bureaus correctly.
Chapter 7, also known as “liquidation” or “straight liquidation,” is typically the simplest and fastest form of bankruptcy.
Individuals, married couples and businesses can use Chapter 7 bankruptcy protection to wipe out all unsecured debts, completing eliminating financial obligations such as:
• credit card debt
• medical bills
• collection accounts
• civil judgments
• back rent
• overdue utilities
• payday loans
• various personal/consumer loans
However, filing Chapter 7 bankruptcy will not eliminate some debts. These include: most backtaxes, student loans, as well as court-ordered alimony and child support.
Top questions answered in bankruptcy:
- Chapter 7 bankruptcy explained
- What to do before filing chapter 13
- Chapter 13 bankruptcy explained
- Can I keep my car if I file bankruptcy