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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.

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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 www.creditalliancegroup.net or debt-credit-repair.com/index.html
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