Chapter 7 Should be a Last Resort
Avoiding bankruptcy has become a national priority, as hundreds of thousands of homeowners face losing their homes to high interest Adjustable Rate Mortgages (ARMs) and unemployment rates continue to soar. Bankruptcy is a legal, but last resort to resolve personal or business indebtedness. Filing a Chapter 7, Chapter 11, or Chapter 13 bankruptcy may seem like a quick fix, but these drastic measures can adversely impact future buying power. Because bankruptcies remain on an individual’s credit file for ten years, many financial institutions may turn down future loan applications. Therefore, consumers facing financial crises need to discover how to avoid bankruptcy and consider feasible alternatives to resolving indebtedness.
