What holds many people back from going through with a chapter 7 bankruptcy filing is the fact that it will destroy their credit. Many people work throughout their lives to protect and build their credit, so it is very difficult to see all that hard work wasted when they start to struggle financially.
Many will try to hold on and get a grip on the accumulating bills because they don't want their credit to be destroyed by filing for bankruptcy. In some cases this can work out in the end, but in many cases it actually makes no sense at all.
The Facts of Bankruptcy Filing
When you go through with a chapter 7 bankruptcy filing it is true that your credit will be hit with a glaring mark for up to 10 years. Everyone who considers you for a future loan will check your credit, see that you have filed for bankruptcy, and probably think twice before approving you for any type of loan.
This mark could be on your credit for as long as 10 years. That means a decade of your life could be spent paying for your bankruptcy filing today.
Here's a fact that some people don't think about: if you are planning on living only on your earned income and not applying for credit cards or loans, then the mark on your credit won't matter as much as you think.
Of course, you won't like it being there and if you do need to get a loan for unforeseeable reasons, it will be a bit harder to get approved. These are the natural consequences that come from a chapter 7 bankruptcy filing.
The Facts of Prolonged Debt
Now that you have a sobering look at what a chapter 7 bankruptcy filing can do to your credit, it's time to consider what not going through with bankruptcy filing can do to your credit. This is something most people never consider, but they should!
If you decide not to go through with bankruptcy, you are stuck with all the debt that you are under right now. Every time you are late making a payment there will be a knock against your credit. Every month that you are unable to make a bill, your credit gets another knock.
Every creditor or collector who takes you to court and gets a judgment against you puts a huge blemish on your credit report that can linger for up to seven years. Every time an account is closed with a lingering balance you will have another ding that looks bad on your credit.
All of these small dings and knocks add up over time until you have a credit report so horrible no lender will consider giving you money. You cannot get credit cards. You have all the trouble that you would have had if you had gone through with the bankruptcy filing.
Debt can destroy your credit over time just as filing bankruptcy can destroy it! The difference is you get no peace of mind or relief from debt when you choose not to file for bankruptcy. You get all the debt and stress that goes with it and your credit could still end up destroyed.
If you cannot pay the bills on time and your credit is going to be destroyed anyway, why not get relief from the debt and just accept the consequences of filing bankruptcy?
Many will try to hold on and get a grip on the accumulating bills because they don't want their credit to be destroyed by filing for bankruptcy. In some cases this can work out in the end, but in many cases it actually makes no sense at all.
The Facts of Bankruptcy Filing
When you go through with a chapter 7 bankruptcy filing it is true that your credit will be hit with a glaring mark for up to 10 years. Everyone who considers you for a future loan will check your credit, see that you have filed for bankruptcy, and probably think twice before approving you for any type of loan.
This mark could be on your credit for as long as 10 years. That means a decade of your life could be spent paying for your bankruptcy filing today.
Here's a fact that some people don't think about: if you are planning on living only on your earned income and not applying for credit cards or loans, then the mark on your credit won't matter as much as you think.
Of course, you won't like it being there and if you do need to get a loan for unforeseeable reasons, it will be a bit harder to get approved. These are the natural consequences that come from a chapter 7 bankruptcy filing.
The Facts of Prolonged Debt
Now that you have a sobering look at what a chapter 7 bankruptcy filing can do to your credit, it's time to consider what not going through with bankruptcy filing can do to your credit. This is something most people never consider, but they should!
If you decide not to go through with bankruptcy, you are stuck with all the debt that you are under right now. Every time you are late making a payment there will be a knock against your credit. Every month that you are unable to make a bill, your credit gets another knock.
Every creditor or collector who takes you to court and gets a judgment against you puts a huge blemish on your credit report that can linger for up to seven years. Every time an account is closed with a lingering balance you will have another ding that looks bad on your credit.
All of these small dings and knocks add up over time until you have a credit report so horrible no lender will consider giving you money. You cannot get credit cards. You have all the trouble that you would have had if you had gone through with the bankruptcy filing.
Debt can destroy your credit over time just as filing bankruptcy can destroy it! The difference is you get no peace of mind or relief from debt when you choose not to file for bankruptcy. You get all the debt and stress that goes with it and your credit could still end up destroyed.
If you cannot pay the bills on time and your credit is going to be destroyed anyway, why not get relief from the debt and just accept the consequences of filing bankruptcy?
The author started DebtFreeBankruptcyAttorney.Com which is a website that helps individuals with debt problems by putting them in touch with a local bankruptcy attorney that specializes in filing bankruptcy under Chapter 7 and Chapter 13 bankruptcy. Check our website for more answers to bankruptcy questions and ideas on how to have a debt free future.
