Penalties of filing bankruptcy

When you file bankruptcy, it will be on your credit report for 10 years and affects your credit score. Basically bankruptcy gives you a fresh start with your credit. Have you thought of consolidation first? Consolidation doens't affect your credit as hard as bankruptcy does and it only shows on your report for as long as you are in consolidation.

The process of filing bankruptcy has now become complex these days. You will have to necessarily undergo a credit counseling first and see if you are eligible for it. Your income will be reviewed. If it is higher than the median income, you can't file a chapter 7 unless you have passed the Means test. Read the procedure in this link

http://forums.debtcc.com/forums/bankruptcy-reform.html

Like Tammy said above, the consequences of bankruptcy are not positive. You will have to rebuild your credit from the beginning after bankruptcy is filed and it takes around 2 years to get started. This page explains more

http://forums.debtcc.com/bankrupt-consequence.html

I am with everyone when it comes to finding another way out of debt first before filing bankruptcy. I have also heard that debt consolidating has it's draw backs to.

One is, that almost everything you owe when declaring bankruptcy is no longer owed. When consolidating credit, you still owe but with one payment instead of many. Also, new companies you want that check your credit report can see you have consolidated credit before.

I have heard by many people, you can get credit faster after bankruptcy than consolidating your credit. Because it's easier for someone to consolidate again than to declare bankruptcy.

I have recently went through bankruptcy and now have more and get more than I did before.

I tried for a car loan a while back and could'nt get one. Two months after I went through bankruptcy, I got a car loan at the first car-lot I went to. I get credit cards faster now than before and with higher limits.

Credit places see what happened to you before and know you do not want it to happen again, so they take more of a chance with you now.

This is my opinion, but if consolidating seems better for you, go for it. What ever makes you happy and helps you out of debt.