Should I file for bankruptcy?

ADVERTISING DISCLOSURE

ADVERTISING DISCLOSURE:
Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from most credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » Research » Guides » Building Credit History » Should I file for bankruptcy?

Should I file for bankruptcy?


Updated: September 27, 2018

The content is accurate at the time of publication and is subject to change.

There`s no denying that even if we are in the best financial situation, we may have against our name, some debt. It isn`t really easy to deal with debt particularly when you know that the amount against your name is large. Besides harming you credit score, piling up debts are further traumatic when you have debt collectors hunting around you to gain their money back. In a worst-case scenario, filing for bankruptcy may be a good option. With this relief method, you can try to conveniently get out of the debt situation and have your finances sorted.

A large number of people today file for bankruptcy. It`s a different thing they find it difficult to admit to and find it embarrassing. Quite a taboo, the word has many confusing things surrounding it for this very reason. We’ve tried to cover all that users may need to know about this financial debt relief process.

Most people who have either filed for bankruptcy or are considering doing so are worried about their credit. Sadly, using this process to get rid of debts does affect a person`s credit score, but that`s only for a temporary period. More often than not, it should take around five to six years for you to repair the damage that may have been done to your credit rating. After the payments have been made, you should make a responsible effort towards bringing back your reputation among financial institutions.

Remember it`s better than having all the debts pile up which could impair your credit score in much worst ways. Bankruptcy is a better option on a long-term basis. So how expensive is filling for bankruptcy? Well, not very, but unlike the common misconception held by many people this method definitely isn`t free. Generally there are committed bankruptcy companies that guide users through the situation. You would have to shell out a fee on a monthly basis before the company can declare you debt-free.

The question may be asked, how would you know if you should file for bankruptcy or not. As with any other financial situation, you should be able to determine if you are eligible for bankruptcy by proper research. Inquiring with different companies and gaining complete information will allow you to know if you fit the bill. It is in very rare cases that a bankruptcy application is turned down. The amount of money you owe people goes a long way in deciding whether you should file for bankruptcy or not.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.
Add to Favorites:

Related Research:

Citi Premier® Card – A World Elite Mastercard Travel Credit Card

Citi Premier® Card – A World Elite Mastercard Travel Credit Card

Posted: February 10, 2021

Citi, a Credit-Land.com advertising partner, offers the Citi Premier® Card, which gives elevated ThankYou points for your travel expenses and, with the recent update of the rewards program, for purchases at restaurants, supermarkets, and… Continue reading

Discover it® Miles Review: Turn Miles Into Travel Experiences or Cash

Discover it® Miles Review: Turn Miles Into Travel Experiences or Cash

Posted: February 10, 2021

Many travel credit cards come with tempting perks, requiring some effort bonuses, a complicated rewards structure, and steep annual fees. The Discover it® Miles is probably the best Discover card for travel, especially if you do not travel… Continue reading

Top 5 Secured Credit Cards: June 2021 – Experts’ Choice

Top 5 Secured Credit Cards: June 2021 – Experts’ Choice

Posted: October 22, 2020

The COVID-19 pandemic has made significant changes not only in people’s lives and their financial standing but also in the entire financial sector of the U.S. We have collected the best secured card offers from our partners so that you can… Continue reading

You've successfully subscribed!

Please specify the following:All these fields are optional

Your Credit History
Themes you are interested in:

By providing this information you help us make our news letters more useful and informative. Thank you!