To many people struggling with debt problems, bankruptcy sounds like a great solution. After all, you basically get to wipe out all your unsecured debt and you never have to pay it back. That means all of those mistakes and poor judgment calls you’ve made over the years are just wiped clean and you get to start over.
This is technically true…but of course, there’s a lot more to it.
It’s Not All Covered
You’d think that with something as absolute as bankruptcy, all of your debts would be covered, but that isn’t the case. Even as an insolvent or bankrupt person, some debts stick around. Some of the ones that aren’t released include:
- Child support
- Spousal support
- Student loans under certain conditions
- Debt you’ve incurred as a result of fraud
- Outstanding court fines
There’s no disputing the fact that in most cases, bankruptcy offers a fresh start, but its impact on your credit can make that start take a lot longer than you’d like. It’s easy to find a wide range of stories about how bankruptcy affects your credit, but in reality you should expect it to have a negative impact for at least six or seven, and up to 10 years.
The fact that you filed for bankruptcy will be right there for all your future creditors to see, if you can even get credit during that time. You may get your finances organized within a few years, but still won’t be able to get credit for a car or a home because of that massive dent in your credit report.
You may hear about bankruptcy as a viable option for your money troubles, but it should always be a last resort. Some financial ‘experts’ will go on about the evils of bad credit loans and similar solutions because of higher than average interest rates, but keep in mind you can pay these loans off at any time and that will be that.
We all take financial missteps from time to time…it’s inevitable. No one is perfect. Just try not to jump on board the magical fresh start solution of bankruptcy before you explore some other options, first. Bad credit loans can help you organize and scale down that debt just as easily, and it won’t be following you around for the next decade.
Fast Access Finance specializes in a variety bad credit loans. Take a look at the types of loans we offer to determine which is best for you.