Considering To ‘Enter Bankruptcy Protection’?

In today’s unforgiving economic climate of recession, jobs being lost, and the value of homes dropping all across the land, many consumers are having serious thoughts and discussions about bankruptcy: how to file bankruptcy, how does it work, how does it hurt, and other bankruptcy questions.

At first glance this might seem quite normal, especially if one were to believe all the bankruptcy lawyers shamelessly parading themselves on their TV commercials, shouting (quite literally) for all the world to hear that filing for bankruptcy “protection” is the proper thing to do when one is struggling with credit card debt.

However, there is oh so much which the lawyers don’t and won’t tell you about bankruptcy. Such as all the staggering consequences which a bankruptcy filing brings. If you were to file bankruptcy, your credit would be virtually destroyed. It’s been said that a person with no credit history stands a better chance of getting a much needed loan than a person with the stain of bankruptcy on their credit history. In fact, banks and lenders look at these sorts of credit reports as toxic, and understandably view the unfortunate consumer with this on his or her record as high risk.

Other consequences: this stain of bankruptcy will remain on your credit record for up to a full 10 years. Think about how this will affect you: You would be unable to get any sort of credit or loan during this time – home loan, car loan, or other sort of loan. You could lose certain property – even your home since you would be at the mercy of a bankruptcy judge. And after the recent changes in the bankruptcy laws which took effect in 2005, the new laws are heavily slanted in favor of creditors rather than debtors. Besides this, a person must now enroll in a full 6-month consumer credit counseling course by a certified counselor before then can even file a bankruptcy petition. During this time you would still be at the mercy of your creditors.

You could also most likely find yourself being passed over for a job, as many more employers these days are performing background credit checks are part of their routine job applicant screening process. Whether one agrees or disagrees with this practice is cause for debate in itself, but it’s nearly standard now.

If you or someone you know is suffering a financial burden, bankruptcy is clearly not the way to go. There do exist debt relief programs that serve to help consumers reduce and eliminate credit card debt.

To learn more about these options, please visit Total Debt Relief.