What Can I Expect If I File a Credit Card Bankruptcy?
A credit card bankruptcy may be the only way out of a financial mess that someone finds themselves in. Are you in such a situation? Are you no longer able to even pay the minimums on your credit cards? Have your creditors started calling multiple times a day? What can you do about it?
There are a number of options available to either shed your debt completely or modify the terms of your payments to make it possible for you to pay back your balances. Each has it’s own unique advantages and disadvantages. This article focuses on perhaps the most extreme approach, credit card bankruptcy.
In a bankruptcy, specifically a chapter 7 bankruptcy, all your unsecured debt is wiped clean, allowing you to have a fresh start. However you will pay a price. A credit card bankruptcy will be on your financial record for at least 7 years. This means whenever you want to borrow money during that time, rest assured you will be paying a higher interest rate. In addition, employers, landlords, and insurance companies to name a few, take a peek at your credit history to base decisions upon.
Contrary to reports, filing bankruptcy has not become harder since the laws have changed. You will be required to pass a means test. This test is simply a way for the court to determine if you are eligible to file for bankruptcy. The test is a comparison of your debts versus your income and assets.
Once you file for credit card bankruptcy
Because of the damage to your credit, and the social stigma attached to filing bankruptcy, this is not your best option if you can help it. But if you are stuck with no way out, credit card bankruptcy is a viable option.
Debt settlement is a way for you to potentially save thousands of dollars, and avoid bankruptcy.
To see a side by side unbiased review of three highly popular do-it-yourself debt
settlement programs, visit:
<a target=”_new” target=”_blank” href=”http://www.diydebtsettlementcourses.com”>Do It Yourself Debt Settlement</a>.
John Phillips owns and operates www.diydebtsettlmentcourses.com
John Phillips is a writer, musician, and electronics tech. Article Source:http://www.articlesbase.com/credit-articles/what-can-i-expect-if-i-file-a-credit-card-bankruptcy-1073786.html
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