Declaring Bankruptcy
If you feel like you have no option other than filing bankruptcy you are not alone. Approximately 800,000 Americans filed for bankruptcy in 2007.
Bankruptcy is a legal proceeding filed in the United States Bankruptcy Court. It allows you to obtain a discharge of your obligation to pay certain debts. A bankruptcy filing will become part of your credit report for 10 years. This may make it more difficult and more expensive to get credit in the future. You will be considered a high risk and it will be harder to rent a house, buy a car, or do anything that requires a series of regular payments.
However, it can still sometimes be your best option. A debt counselor can help you decide if bankruptcy is the way to go. You must complete bankruptcy counseling before you can file for bankruptcy.
