Chapter 7 bankruptcy erases debt but forces you to liquidate your assets. It can be filed once every eight years and will remain on a credit report for 10 years.
Chapter 13 bankruptcy allows you to keep your assets in exchange for setting up a repayment plan. An individual can file once every two years and the bankruptcy will appear on a credit report for 10 years.
Filing for bankruptcy will make loans more costly and may make unsecured loans impossible to obtain.
Qualified retirement plan assets, such as 401(k)s, are protected under all bankruptcy filings, and assets of up to $1 million in IRAs are also protected.
An alternative to bankruptcy is negotiating a repayment plan with creditors. For a modest fee, a professional credit counselor can assist you with these negotiations and help you improve your long-term financial health. If you're considering Bankruptcy, check out the rest of this article. http://finance.yahoo.com/how-to-guide/banking-budgeting/29241
No comments:
Post a Comment