Feedback Form
Home Features Mastermind Forums About Advertise Blog Network Contact Be An Author

The Bankruptcy Myth

The Bankruptcy Myth

Many people experience financial difficulties in life. These difficulties stem from a number of factors. The root cause of much of this difficulty came from a time when expenses were greater than income. Whether the mismatch in finances was brought on by a lack of financial responsibility or factors beyond control, filing bankruptcy is one solution to the problem that has long term effects and misleading ideas. However there is an alternative to filing Bankruptcy that does not have the disadvantages that goes along with Bankruptcy. That alternative is a Debt Management Program.

One of the most noticeable benefits of filing bankruptcy is that you can be discharged from some of your debt. Filing bankruptcy allows you to have a fresh, new financial lease on life. One of the requirements of filing bankruptcy under Chapter 7 is that a financial management course be taken. This course will provide the knowledge that is necessary to management debt once you are given a new start. Another advantage of filing bankruptcy is that creditors are no longer allowed to contact you pertaining to a debt that was included in the filing. The phone calls and letters can sometimes be just as stressful as knowing you owe the money and not being able to pay it. Filing bankruptcy removes both of these stresses.

There are also some disadvantages to filing bankruptcy. After filing bankruptcy, the record will remain on your credit report for up to ten years. This may affect your ability to obtain credit in the future. Creditors and lenders will look at the act of filing bankruptcy as an indicator that you are a risky borrower. You may lose your current insurance if you file for bankruptcy (because insurers see you as more of a risk... arson, car "theft," etc). Once you have obtained a discharge of debts through filing bankruptcy, you may not file again for another six years. This means that if you fall into another financial difficulty situation, you will not be able to use filing bankruptcy as a solution. In addition, any debts that are incurred after the date of filing bankruptcy must be paid. Unless they are also filing bankruptcy, co-signers are still responsible for any debt for which you are filing bankruptcy. Names of who has filed bankruptcy are published in some cities local press and can be viewed online at the Insolvency Service website, making them accessible to anyone in the world.

If you or someone you know is considering filing bankruptcy be aware of the pros and cons of filing. Assess your financial situation to decide first if bankruptcy is the right choice given its long-term disadvantages. Be sure to consider all of your options when you are in debt. There are Debt Management Programs that have the same benefits. Benefits such as not having to deal with the stress of threatening calls and letters from creditors, and having a payment plan implemented to make settlement arrangements to satisfy the debt. Debt Management Programs do not appear on your credit report and you can use them for as long as you want for however many debts you wants whenever you acquire the debts. With Bankruptcy once you’ve entered the program you cannot add any new debts to the current Bankruptcy and have to file again to add debts but you cannot file Bankruptcy within 6 years of a prior filing.

A Debt Management Programs can give you a letter of enrollment which shows all creditors and potential employers that you have not tried to forget about the debt and that you are working to restore your credit. These are your two main options for repaying debts owed. Just be sure to consider all of your options and you can always Ask Credit Alliance Group for any advice you may need to help you decide.





The Bankruptcy Myth - To learn more about this author, visit Eric Pinola's Website.

Like this article? Share it with your friends

Article Feedback
 Article Feedback No article feedback found.
  Leave Your Feedback
article feedback

Article Feedback

To learn more about the Evan Elite Author Program please contact us.

About The Author


Eric Pinola
(Visit Eric's Website) Credit Alliance Group is a leading debt management company in Dallas, Texas that provides solutions to any unsecured debt challenges. As the director of enrollment I am encouraged to see how much we can help people each day. Our programs are built around the client’s budget; so that they can become debt free again without unnecessary stress. We offer a Basic, Pro, and Elite edition of our services. The road to becoming debt free can be long and hard so it is important to make the journey with a company that truly cares and has the experience to get the job done right the first time. Check out our website; or give us a quick call for a free no obligation enrollment package with your figures in it. 1-866-359-5677 http://www.creditalliancegroup.net or http://debt-credit-repair.com/index .html

Eric Pinola is a Gold author on EvanCarmichael.com
About The Author

View Author Blog
Credit Alliance Group - Dedicated to helping people to become debt free.
Credit Alliance Group
View Author Blog

View Author Video
View Author Video

Free Downloads


Eric Pinola's

Complete
List Of
Sales
Articles

Name
Email
If you enjoyed this article, get Eric Pinola's Complete List of Sales Articles For FREE!

More Eric Pinola
Debt Management Options for the Average Person
Personal Credit Card Debt How to Earn 1835
Basic Interview Etiquette
Crosscollateralization
How Do I Know I Need Help With Debt
Excellent Credit Score yet not able to obtain new credit
71000 Complaints to the FTC about Creditor Harassment Last Year up 500 from 2004
How Does Debt Settlement Affect My Credit
Yes Virginia There is a Santa Claus and a Cloud with a Silver Lining
Debt Consolidation vs Debt Management vs Debt Settlement
Free Downloads


 
 
 


Evan Elite Authors
David Barr  
Linda Richardson  
John Alexander  
Evan Elite Authors

Become An Author
Have you written articles that would be of value to entrepreneurs? Become an expert on our site by publishing them! Expose yourself to a wide audience, drive more traffic to your website and get more sales! Click Here for details.
Become An Author

Evan's Latest Video
Modeling the Masters: Learn the true secrets behind Walt Disney's business success factors & grow your company! Video produced by Phanta Media
Evan's Latest Video

Business Opportunities
"Learn straight from Evan how you can Make a Full Time Income (And More) from a Website"

How to Start An Online Business

Click Here To Learn More
Business Opportunities



Evan's Newsletter
Get advice & tips from famous business owners, new articles by entrepreneur experts, my latest website updates, & special sneak peaks at what's to come!
Name:
Email:
Evan`s Newsletter

Free Downloads
Instant Scripts Icon Instant Scripts
Non Disclosure Agreement Icon Non Disclosure Agreement
Maslow For Entrepreneurs Icon Maslow For Entrepreneurs
Definitions of Success Icon Definitions of Success
Reference Check Form Icon Reference Check Form
Free Downloads - Complete List

Entrepreneur Tools and Guides
Write The Press Release
Write The PR
Press Release Builder
 
Choose A PR Topic
Choose A PR Topic
Press Release Builder
 
Entrepreneur Tools and Guides

SEO For Africa
SEO For Africa
Araba Sam Cape Coast, Ghana,
Araba Sam
Cape Coast, Ghana
SEO For Africa

If I Were A Startup...
Gord Hotchkiss, $113k to $1.5 Mil in 5 years
Gord Hotchkiss
$113k to $1.5 Mil in 5 years
Travis Hartley, 426% Growth in 2 Years
Travis Hartley
426% Growth in 2 Years
If I Were A Startup... - Complete List

Famous Entrepreneurs
Estee Lauder, Estee Lauder
Estee Lauder
Estee Lauder
Paul Newman, Newman's Own
Paul Newman
Newman's Own
Famous Entrepreneurs - Complete List

Entrepreneur Advice
Jack Canfield, Chicken Soup
Jack Canfield
Chicken Soup
Jay Conrad Levinson, Guerilla Marketing
Jay Conrad Levinson
Guerilla Marketing
Entrepreneur Advice - Complete List

Popular Articles
(Premium Authors)

     Use Your Email Signature
By John Kilbride
     Tips for Selecting Software for your Small Business
By John Kilbride
     Top Tips for Starting & Running your Article Marketing Campaigns [Part 1 of 2]
By John Kilbride

Have A Suggestion?
Toronto Salsa Classes / Toronto Salsa Lessons Email us your ideas on how to make our website more valuable! Thank you Sharon from Toronto Salsa Lessons / Classes for your suggestions to make the newsletter look like the website and profile younger entrepreneurs like Jennifer Lopez and Sean Combs!
Have A Suggestion?

More Evan Carmichael
More Information