A Few Facts About Bankruptcy

Here are a few facts about bankruptcy that will help you worry a little less tonight about your debts:

  • Our founding fathers recognized the importance of allowing the American worker and business owner to start over.
  • Chapter 7 bankruptcy allows you to eliminate only your consumer debt, but allows you to keep your mortgage and car.
  • Chapter 13 banruptcy allows you to consolidate your debt, including taxes and student loans into a structured debt repayment plan.
  • Most American workers will qualify for bankruptcy under the Chapter 7 laws.
  • Hardworking, honest people who have tried or have repaid their original amount borrowed, but can’t get ahead of the interest are typically the ones who file for bankruptcy.
  • Most credit card companies establish their headquarters in states like South Dakota, where interest rate regulations are relaxed.
  • Most people juggle monthly bills for months before finally realizing they are no longer working for their own family and need to file for bankruptcy.
  • You can usually start rebuilding your credit history immediately after you file for bankruptcy because many creditors actually consider you to be a better credit risk.
  • Once you have filed for bankruptcy, you cannot file again for eight years.