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7000 Peters Creek Rd., Roanoke, Virginia
1-866-260-5994 |
CCCS of Southwest Virginia |
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Bankruptcy |
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At CCCS, we see people who have gotten themselves so deeply into debt that they don’t feel like an end to their problems is possible. No matter how hard they work at making their payments, there seems to be no light at the end of the tunnel. Many of these people tell us that they have considered bankruptcy as a last resort.
Unfortunately, a lot of people don’t understand the realities of declaring bankruptcy. They see it as a way to make their debts magically disappear, and feel that any consequences they may experience will certainly be more bearable than the burden of their debt.
It’s important to understand, however, that you pay a heavy price for what essentially amounts to breaking a promise. Put yourself in the creditors’ position for a second. You make your living by lending people money and having it repaid with interest. One day, someone comes along and asks to borrow money from you, but you discover that others who have lent them money have never gotten it back. Would you lend money to this person?
The price you pay for bankruptcy is ten years of having it on your credit report. That means that for ten years, you will be severely restricted when applying for credit, either by being denied or by paying exorbitantly high interest rates. Getting a loan for a new house or car may be out of the question. Some insurance companies are now checking credit records when determining your premiums. In fact, it could adversely affect your ability to gain employment or promotions in certain fields.
Furthermore, you aren’t always relieved of all your debts. Some obligations – like federal taxes, student loans, child support, and alimony – aren’t discharged even if you declare bankruptcy.
Having a bankruptcy on your record is a stigma that stays on the public record for 20 years in some states, even though it is removed from your credit record after 10 years. Many people who have declared bankruptcy report that, in addition to all the negative results mentioned above, they also have to deal with feelings of personal failure, and a severe blow to their self-esteem. However, there are cases where people get so deeply into debt that there is just no mathematical way to resolve the situation.
It takes time to get deeply into debt. It also takes time to dig your way out. |
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CCCS, A Division of Money Management International
Regional Headquarters - 7000 Peters Creek Rd., Roanoke, Virginia
Corporate Address - 9009 West Loop South, Seventh Floor, Houston, TX 77096 |
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