1. Bad Credit: A bankruptcy will absolutely negatively effect your credit. A Chapter 7 or Chapter 13 bankruptcy can actually put a big black mark on your record for as long as 10 years, and your credit score drops 150 to 250 points. This could spell trouble in many avenues, including job hunting.

2. You CAN lose your property: A lot of people don’t know that if a creditor doesn’t get enough of a payout they can sue and depending on your state’s laws and your own personal situation, you can lose your car and your home if you have one.

3. Problems with Employment: Bankruptcy can do a lot more than make it difficult to rent or own a home or car because many employers now are requiring credit checks as part of their screening process.

4. It goes on your public record. A bankruptcy stays on your public record for 20 years, not something to be taken lightly.

5. You may still owe money: Declaring bankruptcy does not eliminate all debts. There are certain debts that cannot be discharged even after you say you’re bankrupt. This includes student loans, child support, alimony, back taxes, and certain judgments can’t be discharged.

There are alternatives to filing bankruptcy. The first recommended step is to find a credit card debt settlement program for a free consultation.

Evelyn Novelo is a guest author for Franklin Debt Relief, a leading credit card debt consolidation company in Chicago, Illinois.

When you get behind on your mortgage payments you need to decide to go with option for foreclosure or bankruptcy but both option are neither attractive nor good for your credit score. When you have no other option to survive you have to choose the less bad one between these two options. There must one be better upon another that is depending on homeowners situations.


The person only who not like to hold his property the foreclosure may be little attractive to him but others must prefer to filling bankruptcy then foreclosure. Although both will make negatively affect on your credit for up to 10 yrs you may not able to buy property or real assets for next 10 yrs. But a well furnished filling of bankruptcy will make less affect then the foreclosure so you can quickly recover your credit position by getting a job or new opportunity of earnings and at fast make purchase with cash to rebuild credit score.

Once you able to recover your credit score you can get back you old good life. If you prefer to foreclosure your home property, you will even not able to eligible for employment as because of you credit report will reflect all about your character what you are and your ability to pay back their obligations. The bankruptcy process will eliminate all your dues or settle your credit and you get a fresh start to life, but when you filling a foreclosure you may not able to clear off all your debts so problems may still remain on your life and you are also locked for taking new loan for next 7 years.

After all it is clear that you must choose the best one according to your situation but although a foreclosure remains on your credit score for 7 years and bankruptcy stands for 10 years other then that bankruptcy is better and quick recovering to fresh life.

The most common form of bankruptcy is known as bankruptcy chapter 7 in the united state. There is some description of process of liquidation under the lows of bankruptcy of the united state. This type of bankruptcy may be filled by an individual who have no dismissed cases for bankruptcy within 180 days and a business may also file Chapter 7 bankruptcy if the business is unable to pay off its creditors and bad condition debt collection. Generally bankruptcy is happen only when the debtor has no property to sale to repay his debt and he passes the entire chapter 7 qualifying process of bankruptcy.

The Chapter 7 bankruptcy is a process of several criteria. According to the new amendments the debtor has to pass now the means test which is a two steps process of calculation of debtor’s income. The first step of means test is the comparison between debtor monthly income and median income of the state. If the monthly income is less then median income of the state, the debtor can qualify for bankruptcy filling and if his monthly income is higher then median income, he must has to go for the second step of the qualifying process which is the calculation of debtor’s last 6 months disposable income . If the debtor’s 6 months disposable income is less then $ 6,000, he passes the means test and he can file a petition for bankruptcy.

The Chapter 7 bankruptcy is now very famous as liquidation bankruptcy. But before filling it a debtor must has to consult with any bankruptcy attorney who can help to qualify bankruptcy according to the state law.

Do you know how does foreclosure work? It is really important to know how foreclosure works so that you can avoid the situation and if you are in foreclosure then you should definitely know how it works. So let’s check out how does foreclosure work?

As soon as you miss a monthly mortgage payment, your mortgage company will send you a letter telling that they have not got the monthly mortgage payment and will ask you to pay it as soon as possible. They will keep sending you this letter each month when ever you miss a monthly mortgage payments.

If you miss mortgage payments in three consecutive months and don’t reply or try to make any payment then the mortgage company will file foreclosure with the court. The court will send you the entire amount of debt that you need to pay to the mortgage company with a certain period of time; approximately 20 to 30 days.

If you do not respond to it within the given time period then the attorney of the mortgage company will file the notice of sale. Then a sheriff auction date will be fixed when your house will be auctioned and sold to make payment to the mortgage company.

Now in this entire process any time the foreclosure can be stopped if you can make payments to your mortgage company. The thing is that the mortgage company does not want foreclosure but they want to get their payments. So contact your lender or the mortgage company as soon as you miss any mortgage payments and try to work out a solution with your lender.

Can Bankruptcy Stop Foreclosure?

Bankruptcy can stop foreclosure but bankruptcy should be the last option to choose to stop foreclosure. Do you know that thousands of people face foreclosure every year and the number is increasing in this recession. There are many ways to stop foreclosure and Bankruptcy is of the ways to stop foreclosure but this should be the last option to save the home form foreclosure. Filling bankruptcy will stop foreclosure immediately and the entire process will be on hold and this gives the foreclosure victims a little bit of time to reorganize themselves. The foreclosure victims can also pay off their creditors with an affordable repayment plan.

The foreclosure victims also need to know the consequences of filling bankruptcy. This will certainly help then to stop foreclosure but it will also hurt their credit hugely and they may not be able to get approve any long in next 5 years. If they miss any payment of the repayment plan then the entire foreclosure process will start once again but the fact is when there is no option available Bankruptcy is a great help of the Foreclosure victims to save their home.

Filling bankruptcy is an expensive process but it is better to take help from a reputable Bankruptcy Attorney because there are some attorneys who ask their clients to switch filling chapter13 to chapter7 to get more fees but the reputable attorneys do not do so and give the best possible suggestions to get out of the problem. At last I would say Bankruptcy is a great relief provided by the Federal government and if there is no options available for you to stop foreclosure, then do not hesitate to file bankruptcy. Bankruptcy is at least far better than foreclosure.

What is Bankruptcy?

Now what is Bankruptcy…..Bankruptcy is a legal process through which the helpless debtors can get relief from the creditors. As soon as you file Bankruptcy, the creditor will have to stop to harass you for making you pay. This process is taken care under the Federal Court. After filing the Bankruptcy you can start anew and all your unsecured debts will be eliminated. There are different types of Bankruptcy that you can file according to your situation. Chanpter7 and chapter13 are the most common from of bankruptcy.

If you file Chaoetr7 Bankruptcy, then all your un-exempt properties will be sold to pay the creditors and this will hurt your credit score hugely. So this is really the last option for a debt to file Chapter7. You may not even get a  loan for 7 to10 years after filling the chapter7 bankruptcy.

If you can file Chapter13 bankruptcy then you can keep all your properties but you will have to pay off your creditor with an affordable repayment plan. Chapter13 hurts your credit score lesser than chapter7 bankruptcy.

So if it seems that you cannot make payments to your creditors and they are harassing you for making the payments then you should contact an attorney to check out whether you can file Bankruptcy or not and even if you can file, which is the most suited type for bankruptcy for your situation. If you are trying to file bankruptcy then it is always better to take help from an bankruptcy attorney.