Bankruptcy

Bankruptcy should be seen as the last resort for people who have got themselves into too much debt.

It may seem the answer to all your prayers but bankruptcy is only able to solve certain debt issues.

Remember, if you have filed for bankruptcy you may find it difficult to obtain credit in the future unless your bankruptcy has been cleared, or discharged for a number of years.

Bankruptcy is very good for wiping out credit card debt. Unless you have a special secured credit card, your credit card balance is an unsecured debt.

That means that the credit card company has no hold on anything that belongs to you if you do not pay back your debt. This is specifically the kind of debt that bankruptcy is designed to remove.

Apart from credit card debt, you may have other unsecured debts, and bankruptcy can
eradicate these as well.

However, bankruptcy will not discharge your obligations to some other kinds of debts, including child support, alimony, tax debts, student loans, and any secured debts.