Frugal Tips

Frugal tips for all. Simple ways to save and earn.

Declaring personal bankruptcy should be your last resort. You probably heard it many times from many different people. While this is true and filing for bankruptcy should be avoided at all costs, bankruptcy does have some pros.

The most obvious benefit of bankruptcy is that at least a portion of your disgusting debt is going to be removed.

Also, bankruptcy can help you get out of the mess you got yourself into without losing your car, your home and even your retirement account. There are different types of bankruptcy and it is better to hire a professional who can take a look at your situation and tell you what exactly your benefits would be.

If you were going to lose your driver’s license due to nonpayment of an auto accident judgment against you, bankruptcy can help you keep it.

Despite these pros, bankruptcy still should be your last resort and here is why:

If you become officially bankrupt, your name will be entered in court records, which is not very pleasant in my opinion.

Your credit history is going to stink for years and it will be nearly impossible to take a loan or a mortgage in a near future.

Bankruptcy doesn’t wipe out certain debts, such as child support and student loans, so you may end up not only bankrupt, but still in debt.

Talk to a professional about your situation and if there is a chance for you to get out of debt without declaring personal bankruptcy, make sure to use it.

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