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They have also made me feel better about my situation in the sense that I haven't done anything wrong and that this can be fixed. They have taken the pressure off me and been great in helping to resolve my financial problems. Thank You. - MarryAnn B.

Personal Bankruptcy

Personal bankruptcy is a legal way to give people with overwhelming debt a fresh financial start. However, it is important to realize that certain forms of debt, such as student loans, are not forgiven through the bankruptcy process.

Bankruptcy can have a devastating impact to your credit report and credit score, often remaining on your credit report for as long as ten years. During this time, it can be next to impossible to obtain loans or any type of credit because of personal bankruptcy. If you are able to find a lender that is willing to do business with you, you will pay the highest possible interest rates allowed by law.

Quite often, lawyers are quick to suggest bankruptcy, but they don't always explain how damaging bankruptcy can be. The best thing that you can do is obtain independent information if you are considering bankruptcy.

There are two forms of bankruptcy - Chapter 7 Bankruptcy and Chapter 13 Bankruptcy:

Chapter 13 bankruptcy involves reorganizing your debt in such a way that you can keep the property you might otherwise lose, such as a car or home. Chapter 13 will allow you 3-5 years to pay-off the items you have as opposed to losing them entirely.

Chapter 7 bankruptcy is the most straightforward form of bankruptcy. It involves liquidating all of your assets. However, this can depend upon the laws for the state in which you live. Traditionally, a court appointed representative will sell your personal property or it will simply be returned to the creditors that you owe money to. Federal law only allows consumers to file for Chapter 7 bankruptcy every six years.

Note: The materials on this web site are intended for informational purposes only. The materials on this web site are not intended to be, or should they be interpreted as, legal opinion or advice. The reader should not rely on the information presented on this site for any purpose other than general information.