Missing your debt payments doesn’t just affect your credit score. It also leads to sleepless nights and, in some cases, serious stress. Most of the time it’s the credit card companies that catch your eye the most. When you can’t meet credit card debt should you file for Chapter 7 bankruptcy?
Here are some points to help you make the right choice:
* You must understand that filing a Chapter 7 bankruptcy is not smart enough. Adds to bad credit score for 7 years.
* All these years, you would be in big trouble getting a credit card, home loan, car loan, personal loan, etc.
* Many people file for Chapter 7 bankruptcy instead of Chapter 13 to get rid of credit card debt. It is a partial declaration of financial losses, unlike Chapter 13. But it gives you a bad name financially and legally.
* You should consult an attorney and learn all the pros and cons of this step before deciding anything. Credit card debt is not enough of a problem to file for bankruptcy.
Bankruptcy Alternatives
* With the 2009 Stimulus Package, President Obama has offered several grants. He could get one of these and use the money to pay off his credit card debt. These grants are provided directly by the Federal Government and you can apply for them on the official website of the Government. Here he would not even have problems if he has a bad credit score. He just provide correct and complete information and he will get some help from the government.
* Other alternatives could be to get some personal loans from banks. Now, with the stimulus package, you can get loans with bad credit scores, too. You must try one of these after online research.