Do you have the facts about filing bankruptcy? The negative information that will be placed in your credit report will remain there for up to ten years, making it difficult, if not impossible, to obtain credit cards, a home or vehicle loan, or even finance a smaller purchase such as a major appliance. Having a bad credit rating due to bankruptcy can make it difficult, if not impossible, to even obtain something as simple as a savings account. It can limit your employment options as well, because many employers run credit checks on potential employees, using the credit history of that person to determine factors such as reliability, stability, evidence of character flaws, and lack of management skills.

     Before you make the decision to file, you should first consult a credit counseling service and/or check into debt consolidation options.  Many creditors, especially credit card companies, will work with you if you are unable to pay your bills by "charging off" part of the amount that you owe them. Credit counseling services work by negotiating with your lenders on your behalf, often at no charge to you, and reach an agreement with them on new terms and amounts for your payments. Often, in order to avoid losing the entire amount that you owe them, lenders will settle for pennies or dimes on the dollar as long as they are assured that they will recover at least part of what you owe them. Also, as long as you are in credit counseling or the consolidation process, you no longer have to dread answering the phone; the counseling service will handle all the collection issues for you. 

     In the end, though, it will be you that has to make the final decision as to the best course of action to take. Take your time and choose wisely; the results could be with you for a decade to come, affecting your employment, credit, and insurance options. 

        You can also visit the debt consolidation section of this site for more information about credit counseling and consolidation programs and options.

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