Page 52 - Book1E

Bankruptcy should be the last resort and avoided if at all possible. Unfortunately, many people file bankruptcy without being informed of the long-term negative impact it will have. A credit report will show a Chapter 7 bankruptcy for 10 years which makes it very difficult to acquire new credit, purchase a home, get life insurance, or even get a job, especially if the job requires managing money. The bankruptcy laws that went into effect in October, 2005, mean most filers will be faced with a Chapter 13 bankruptcy instead of a Chapter 7. A Chapter 13 bankruptcy requires a person to repay a portion of his or her debt within three to five years and is similar to being on consumer credit counseling, and the monthly payments can be quite difficult to manage. Within six months prior to filing a Chapter 7 or 13, individuals are required to seek
“Just wanted you to know how much I appreciate you. In approximately 18 months, I will have all my debts paid off and will never have the stigma of filing for bankruptcy. Thanks!”
—A.W., Evanston, Wyoming
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The Emotional Price of Debt
credit counseling and obtain education to help them with their financial problems. If a credit counseling agency cannot help, the agency issues the individual a certificate allowing him or her to take out bankruptcy. The individual is required to receive post-bankruptcy education as well. FFEF has been approved by the Executive Office for the United States Trustees (EOUST) to provide the required pre- and post-bankruptcy credit counseling. If you are pursuing bankruptcy, please consider FFEF as a resource for your counseling and certificate needs.
What should you do?
1. If you’re afraid you may default on your loan, try selling the car or property yourself and using the money to pay off the loan. You will not only avoid the expenses involved in a repossession, but