Bankruptcy - Think about this: Our Forefathers Gave Us the Constitutional Right to Be Free
Many people are embarrassed to find themselves in the place they are today... out of work, no savings, house near or in foreclosure, cards maxed out, the car payment due (or behind), and no where left to turn. But there is no shame in filing bankruptcy! It's our constitutional right that our forefathers gave us. If you qualify, which MANY still do, you can still file Chapter 7 bankruptcy and get a "fresh start".
Lending institutions can be brutal, especially since the bailout. The minute you go over your limit, or bounce a check, you become their enemy. They normally refuse to help you regardless of your good history, and suck you dry with overages and fees before you can begin to make a dent in your balances or fix your overdrafts.
While bankruptcy will potentially be a negative mark on your credit record for 7-10 years, and bankruptcy isn't the first or only option available to debtors, there are positives to bankruptcy as well. This is especially true for the young people with long credit lives, elderly people with short ones, or indigent people with massive medical bills and on limited income. For those suffering job loss, home foreclosure, and mass unsecured debt, or a devastating divorce situation, bankruptcy allows people a way to rebuild their personal and financial lives within a matter of a few years.
Many lenders actually view those who have been through bankruptcy as less of a risk initially because you can't file again for a minimum of 7 years. Secondly, your debt to income ratio may be better because you have potentially reduced your large, unsecured debt, etc., freeing yourself to save larger amounts of cash (if you are wise) for a future home, car or retirement.
While bankruptcy laws were changed and made more restrictive a few years back, most people can still qualify.
Patrick Sparks, Attorney at Law