Financial misfortunes?
If a good friend of yours has had serious financial misfortunes lately and is unable to meet her debt payments, what advice can you give? Be sure to include the topic of bankruptcy because she has heard that it eliminates all your credit problems. What is the difference between straight bankruptcy and a wage earner plan.
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It sounds like she would need to file chapter 7 bankruptcy and if she has a job chapter 13. You have to give up most all of your possessions including cars, homes, and personal items. If an you have some source of income, you will have their wages garnished in order to pay back some of their debt. Filing bankruptcy is a very serious undertaking. New laws require debtors to go to personal finance classes. Your credit rating will plummet and you will have an incredibly hard time, if at all, to find someone to give you any type of loan to buy anything. The fact you filed for bankruptcy wil hang over your head for many years. It will stay on your credit report for 7 years. Some people have no other options. If your friend feels this way then filing for bankruptcy is what she should do, but it is a big decision.
She should contact United Way and speak to someone about FREE credit counseling. THey will look at her specific situation and see if they can help her find a way out of the situation without filing for bankruptcy. Bankruptcy should be e a last resort.
Hi,
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