What Some Financial Advisors, Creditors and Counselors Don't Tell You

Are financial advisors really telling you everything you need to know about bankruptcy, credit counseling services, credit cards, and creditors? Most often they are not. The following information will provide you with additional insight before you take action to resolve your financial problems.

Bankruptcy

The consumer bankruptcy laws are designed to wipe out debt. These laws are based on forgiveness not retribution. There are some debts that bankruptcy cannot wipe out such as student loans.

There are no laws that say you cannot own property or establish credit after filing for bankruptcy.

Consumer bankruptcies are not listed in the local newspapers.

A bankruptcy can stop a sheriff or constable from selling personal household effects.

A bankruptcy can stop foreclosures, repossessions and shut-offs. In most cases, it can also legally eliminate the amount owed due to judgments and repossessions.

It is possible to purchase a house after filing for bankruptcy. Often immediately after a bankruptcy discharge, many banks are willing to give individual mortgages so long as you have steady employment.

You will have some difficulty getting certain types of loans for education or some personal needs.

You will not be able to apply for a credit card or qualify for a mortgage soon after you filed for bankruptcy. It takes one to two years after your bankruptcy discharge.

Credit Counseling (sponsored by the credit card companies)

Credit counseling services are designed to get 100% of the amount owed to creditors, in addition to charging you a small fee (15% of your payment is a collection fee).

They are a collection agency and will be reported as a negative rating on your credit report.

All of your creditors are not required to and may not agree to the terms promised to you by credit counseling agencies. Usually, counselors cannot assist you with bank or finance loans. (Payments are mailed one time per month. Late fees and interest may still accrue.)

Creditors