Is Bankruptcy the solution?

Many are in suffering from mounting debt and hardship due to a down economy, so to find relief from their debt they look to file bankruptcy thinking it will help them escape paying for the delinquent credit card bills. To learn the truth is to know that it is not that easy and laws have been put in place that keeps a person who has filed for bankruptcy to have it reported on their credit report for up to 10 years. Also it could affect any future purchases or employment. Bankruptcy is not the best choice for everyone.

Credit repair companies will tell people they can fix your credit and they can erase debt history but this is not true, it will remain on your credit report, disputes can be made with the credit reporting agency but they will investigate and remove some incorrect items and allow your to add a note of why you were late or unable to pay your bills. The down side of bankruptcy is that it can affect one from getting car insurance or leasing a rental or even getting employment, once one files for bankruptcy it can stay on your credit report for 10 years during this time it is not possible to rebuild your credit or improve your credit rating. Bankruptcy lawyers can help in establishing systems to help with better managing your finances.

More Bankruptcy filings are occuring do to the housing market, credit crunch and unemployment rates.

It is predicted that at the current pace of nearly 4,500 filings per business day in September 2008, the total number of filings will reach 1.2 million in 2009, according to a bankruptcy expert -

Bankruptcy is a complex legal proceeding that allows a person or corporation to eliminate debt they cannot repay by dissolving their assets, working out future payment plans and dismissing some types of debt altogether. This fresh start levies a heavy price: Bankruptcies remain on credit reports for seven to 10 years and leave filers with bad credit records. As a result, they have lower credit scores, pay higher interest rates on credit cards or other loans -- if they can get them at all -- and may be rejected for job opportunities, auto insurance or apartment rentals.

Can you afford to file for bankruptcy?

The price of hiring a lawyer is going up it has been recorded that In February and March 2007, lawyers charged an average of $1,078 for Chapter 7 filings -- up from $712 during the same period two years earlier. For those who try to file bankruptcy papers on their own and those who have tried to file for bankruptcy without an attorney called pro se filings have faced difficulty navigating the complex set of rules of bankruptcy law. Talk is of bankruptcy reform and changing bankruptcy code for the many homeowners who are faced with foreclosure.