When Not To File Bankruptcy

The idea of declaring bankruptcy, wiping out certain debts or repaying them over time with court protection with no more hassles or nasty phone calls from menacing creditors, and then moving on more or less debt free has undeniable appeal to anyone faced with overwhelming debt.

But think before you make that decision. Compelling as it may sound, bankruptcy has a lingering and far-reaching impact that will touch every aspect of your life. No matter what the commercials say, bankruptcy is not the easy way out. And there are some things you should know before you take this drastic step.

Bankruptcy stays on your credit report for 10 years and you will have to deal with the stigma of bankruptcy every time you do something that requires an examination of you credit report. It can prevent you from getting the best interest rates and high limits on credit, make it difficult to open bank accounts and get credit cards. You may get credit in the future, but you'll pay much higher rates. On a home mortgage, a person with a discharged (completed) bankruptcy on his or her credit report could pay a rate nearly 4 full percentage points higher than someone with good credit.

Employers notice, too. A bankruptcy on your record affects your ability to get a job and earn more money. Employers face strict restrictions on the questions they can ask job applicants. That's why almost every job application includes a waiver that allows prospective employers to pull your credit report. A bankruptcy on your record means you may not even get to the interview stage.

Ignore those ads asserting that bankruptcy will "wipe the slate clean." Many debts actually survive bankruptcy. Child support and alimony are not excused through bankruptcy. Neither are student loans or back taxes, in most cases. So while bankruptcy might wipe out or lower your credit-card payments, it could leave you with debts still required to be paid.
It is not easy to qualify for bankruptcy because the laws that govern it have been changed to cut down on the number of people who file bankruptcy. This was meant to curtail the use of bankruptcy for those who think they can just wipe out their debts and not be responsible for pay on any of it. A strict application process has to be passed and then you have to wait for a judge to decree that your debt relief request is approved.

No matter how difficult it seems now, getting rid of your debt by making a settlement through the DNS Debt Settlement Program is far better than having to deal with lasting negative effect that a bankruptcy will have on your financial life in the coming years.

Want to learn more? Contact us at 877-964-6404 or email to info@thednsway.com!