How to Avoid Bankruptcy

May 18th, 2008

Tip! Have derogatory credit items removed from your credit report. For the items charged off in your bankruptcy, you will need to send a copy (not the original) of your bankruptcy discharge papers to all 3 of the credit bureaus asking them to remove these inaccuracies.

Many people who are overwhelmed with debt problems consider filing for bankruptcy. However, going bankrupt has a number of serious disadvantages and should be avoided if at all possible.

In this article we will discuss why bankruptcy should be avoided and possible alternatives to filing for bankruptcy.

Getting into debt is easy, especially with so many lenders offering you money via loans and credit cards. It is all to easy to run up huge bills when you are charged high rates of interest on your un-paid debt. Before you know it creditors are pounding on your door and you are too scared to open your mail. That’s when you think that bankruptcy might be the answer.

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

Contrary to popular misconception however, going bankrupt does not mean that you do not have to pay your debts. It simply allows the court to intervene and create a schedule for re-payment. Furthermore it opens you up to all sorts of penalties and disadvantages.

For example, if you are declared bankrupt you may lose your home and you will be unable to obtain credit over

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1 Comment

  • 1. Georgia Foreclosures &raq&hellip  |  May 18th, 2008 at 10:51 am

    […] Alexis Moore wrote an interesting post today onHere’s a quick excerptTip! Have derogatory credit items removed from your credit report. For the items charged off in your bankruptcy, you will need to send a copy (not the original) of your bankruptcy discharge papers to all 3 of the credit bureaus asking them to remove these inaccuracies. Many people who are overwhelmed with debt problems consider filing for bankruptcy. However, going bankrupt has a number of serious disadvantages and should be avoided if at all possible. In this article we will discuss why bankr […]

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