If you're having trouble keeping up with your bills, Bankruptcy may seem like an easy solution. After all, you just file Bankruptcy and all your money worries disappear, right? Wrong! Bankruptcy is a serious legal and financial step, with consequences that
last for years.
Consider these facts about Bankruptcy:
Your credit will be ruined for at least seven years.
It may make it difficult to find a place to live. Based on your credit, landlords could refuse to rent to you and buying a home will be virtually impossible.
It may make it difficult to find a new job. Potential employers may not hire you based on the contents of your credit report.
It is expensive and time-consuming. You can expect to spend a significant amount of money for legal and court fees just for the preparation and filing of the initial paperwork.
Your interest rates on loans and credit cards will increase dramatically from what they were prior to filing.
Bankruptcy does not erase certain kinds of debt, including child support, alimony, fines, taxes and some student loans.
You will pay higher rates for auto and homeowners' insurance.
If you choose to file Bankruptcy, expect your future payments to go up. If you can get credit, the interest rates will be far higher. Below is a comparison of some typical monthly payments before and after Bankruptcy.
*These rates and monthly payments are national averages for pre- and post-Bankruptcy filings and are not meant to represent an offer of credit.
The Perils of Bankruptcy
 Based on the examples in the chart above, you will pay an
      additional $60,000 in interest on your mortgage and an
           additional $2,500 in interest on your auto loan over the
              life of each respective loan.
We can help
     As a credit union member, you don’t have to face
      financial challenges alone. We can help you set up
       a plan to repay your creditors and restore your
        credit rating. If you’re having financial difficulties,
        remember that Bankruptcy is not always the best
       solution. We can arrange a low-cost consolidation
      loan or refer you to a reputable, “no cost,” credit
     counseling service.Please call or stop by – we’ll be
    happy to help you explore your alternatives.