Bankruptcy is known as a "last resort" for beleaguered borrowers for a very good reason: It negatively affects the long-term credit outlooks of those who use it to discharge their debts. Depending upon the jurisdiction in which it occurs, the effects of a bankruptcy filing can persist for up to 10 years. Before you declare […]

If you attended an expensive four-year college, chances are good that you graduated with a heavy burden of student loan debt. In a tight economy, millions of American graduates who can't find steady employment are struggling to repay their education loans. While these credit facilities typically carry lower interest rates than riskier credit cards and […]

Millions of marriages have been ended by financial disagreements. Millions more have been ended by poor financial decision-making. While marrying someone who has recently declared bankruptcy won't immediately damage your credit score or render you unable to secure certain loans, it may complicate your financial health as time goes on. You shouldn't feel shy about […]

When you declare bankruptcy, you stand to lose a tremendous amount of your personal wealth. Your secured creditors, including your mortgage lender and auto loan provider, will seize the assets to which they're entitled under the terms of your loan agreements. Your unsecured creditors, including your credit card issuers, are likely to take the bulk […]

Whether you choose to declare yourself insolvent under Chapter 7 or Chapter 13 of the U.S. Bankruptcy Code, you stand to lose much of your wealth to the bankruptcy process. Before you can pay off your various unsecured debts, which may include your outstanding credit card bills and court judgments, you'll need to satisfy your […]

The bankruptcy process is inherently disruptive. Many homeowners lose their homes to foreclosure after their debts have been discharged. Since many personal bankruptcies are caused by sky-high mortgage payments on devalued pieces of property, homeowners often have no choice but to forfeit their real estate holdings during the bankruptcy process. Ironically, many banks are wary […]

Personal bankruptcy is relatively straightforward. Individual bankruptcy filers typically declare themselves to be insolvent when their debts become unmanageable. Once their case is in process, a bankruptcy judge divides their assets among their creditors on the basis of "debt seniority." Secured debts like mortgages and car loans are settled first. If the filer has assets […]