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dedee By dedee on
Badge: Publisher | Level: 10 | Finances Expertise:

If you are in debt and just drowning in your bills. Struggling to the point of no return. Do you need to declare bankruptcy? Sometimes it might be the best thing to do and other times it is not.

First off the way bankruptcy works. Is you have to pay the agency money around $140.00 a month for a few months. You credit is shot for awhile now. If you try to get your credit back after bankruptcy it can be hard or easy. Let me explain why.

If you are in $50, 000 dollars in debt. With school loans and/or credit cards. Would it be in your best interest to declare bankruptcy? I would have to say no. Bankruptcy takes 7 years to get off your record. But that is after your discharge. I do suggest you see a credit advisor before hand to know what is best for you.

If you are in $200, 000 dollars or more in debt. I would suggest that yes go for it. Depending on your situation. If you can take the set back of 5-7 years. Again do see a credit advisor before hand to know what is really best for you.

I say 5 to 7 years because there is ways to get your credit ratings back up again. There are prepaid credit cards. Where you pay the amount you want on your card and you treat it like you would any other credit card. Pay it back. You may be eligible for this a few years after declaring bankruptcy.

Now here is my main point as to what to keep in mind when declaring bankruptcy. How much you are going bankrupt for? Did you have a business? Own property? This is what really matters. What you need to know is the more you are in debt the easier it is to regain your credit. Creditors will trust in someone who had properties, businesses etc. As suppose to someone who had a hard time paying back and managing a smaller amount of money.