People who follow the bankruptcy rules receive a discharge — a court order that says
they don’t have to repay certain debts. However, bankruptcy information(both the date of your filing and the later date of discharge) stay on your credit reportfor 10 years, and can make it difficult to obtain credit, buy a home, get life insurance,or sometimes get a job. Still, bankruptcy is a legal procedure that offers a fresh startfor people who have gotten into financial difficulty and can’t satisfy their debts.
Many consumers are not familiar with their bankruptcy options. Did you know there are five types of bankruptcy programs offered under the U.S. Bankruptcy Code? However, for most consumers the only viable options are Chapter 7 and Chapter 13.
In most cases filing bankruptcy does stop wages from being garnished. Once you file bankruptcy, you are under protection of the court from most creditors. You should immediately notify the garnishing creditor and sheriff that you have filed a bankruptcy petition. For an example it will not stop child support from being garnished.
Bankruptcies are considered public record. Anyone may call the court and verify if you have filed bankruptcy or come into the court offices and review the file.
A completed bankruptcy may show on your credit record from 7 to 10 years depending on the reporting credit agency
Whether or not you should file bankruptcy depends on your particular circumstances. It may be that after consultation with an accountant and attorney, you resolve your financial difficulties through other means. In some cases, declaring bankruptcy may be necessary. The decision to file for bankruptcy is a serious one. Make sure every decision you make works within your financial capabilities.
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