BANKRUPTCY

Bankruptcy should not be entered into lightly without serious consideration of its long term financial, social and emotional consequences and repercussions. A Chapter 7 bankruptcy is best known for wiping away your debt and giving you a “fresh start”, however, it is more difficult to qualify for because of recent changes in the laws. You must now pass a “means” test based on your income and where you reside. You are also required to take debt education classes. If you do not pass this test, you may have to file a Chapter 13 or “reorganization” bankruptcy. This type of bankruptcy is a debt repayment plan managed through a court appointed trustee and can take a period of three to five years to complete.

The most detrimental consequence of bankruptcy is the lasting negative impact it has to your credit report. Depending on the type of filing you qualify for, a bankruptcy remains on your credit report for 7 to 10 years and is a public record indefinitely.

People thinking about filing bankruptcy should consider the negative implications a bankruptcy may have when applying for new credit, purchasing or refinancing a home, renting an apartment or applying for certain government jobs or promotions. Individuals who have a bankruptcy on their record may be denied some state licenses or insurance. Future credit may be costly and difficult to obtain as many lenders and creditors view a person with a bankruptcy as high risk for default.

You probably never have heard of anyone being proud of having a bankruptcy on their record. Most people will do anything to avoid the negative stigma and mental stress. It’s not an easy or a quick fix. It is an extremely serious decision with serious consequences. If you are considering bankruptcy, you should think about contacting a lawyer to discuss this option. Keep in mind that a bankruptcy lawyer will charge a flat upfront retainer fee of approximately $2000 to $3000 for providing the bankruptcy service. Bankruptcy should be considered as only an absolute last option.

To learn if debt-resolution can provide an alternative to bankruptcy for you, CLICK HERE to find out how we can help you today.

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Disclosure: Individual results may vary and are dependent upon several factors including individual circumstances, creditors’ willingness to settle, successful completion
of program and ability to save funds. Americor Financial debt-resolution program does not assume or pay any debt, nor does it provide legal advice or offer credit repair.
resolution estimates of 50% are examples of past performance of settled accounts and do not take into consideration our service fees or potential tax consequences.
Please consult with an accountant regarding this. We do not guarantee that your debts will be lowered by a specific amount or percentage or that you will be debt-free within
a specific period of time. Program not available in all states. Read and understand contract terms before enrolling.