Bankruptcy

Bankruptcy is filed when people or businesses can’t afford to pay debts and need a fresh start to pay their expenses. They review your assets and determine what could be used to help pay your debt. This is great to help you get your credit score back on track, but since this is federal, a judge will determine whether you’re eligible. Once you’re discharged, you no longer are obligated to pay off your debt, sometimes not ever debt, but usually a good amount. Though, everything has its cons. Once you file for bankruptcy, depending on which, it could stay on your file for up to 10 years. Bankruptcy on your record, while it lowers your credit score will hurt you when trying to rent an apartment, get loans, or buy homes. You may have to live with your parents for a while, trying to recover from the effects of bankruptcy. If possible try to opt for other alternatives to bankruptcy, like adjusting your payment plan or loan modifications. Don’t let debt determine your lifestyle.