Tip! There are no after payments. Once your bankruptcy is discharged that is it, you are debt free.

Personal bankruptcy generally is considered the debt management option of last resort because the results are long-lasting and far-reaching. A bankruptcy will remain on your credit report for 10 years these days. BK’s make things difficult for your credit, because it cause your fico score to drop significantly, as well as tagging a "Bankruptcy" to the derogatory section of your credit report. According to the federal reserve, "Bankruptcies make it difficult to acquire credit, buy a home, get life insurance, or sometimes, get a job. However, it is a legal procedure that offers a fresh start for people who can’t satisfy their debts."

There are two kinds of personal bankruptcy: Chapter 13 and Chapter 7. Each must be filed in federal court. Filing fees are approximately $200, and Attorney fees are not included.

Chapter 13 is BK based on reorganization. Ch. 13 allows debtors to keep property, like a home or a car. Reorganization may allow you to pay off a default during a three-to-five-year period, rather than surrender any property.

More at Loan & Credit Tips: Mortgage Refinancing & Re-Establishing Your Credit After Bankruptcy

Powered by Qumana