Declare bankruptcy - don't do it

If you are racking up credit card bills and can’t even pay the minimum requirements, you may be thinking of filing personal bankruptcy. Word on the financial street…don’t do it.

It will ruin your credit for a minimum of ten years, and make it difficult to get any kind of credit – think car loans, mortgages. If you do manage to secure a loan, the interest rate will be humongous – even 24%. And if you file you may never file again, no matter the extreme situation.

You will lose some of your property. With the new bankruptcy laws, you gotta pay something. There are some obligations that don’t go away, like child support, student loans, back alimony and even recent taxes.

There will be no privacy here. Your filing is a part of the public record (potentially in the newspaper under legal notices) and stuff you may not want your nosy neighbor to know may be included in that record.

Instead get a financial advisor and work out the details as best you can!