Avoiding business bankruptcy is absolutely critical to preserve good credit for the long haul. Debt reduction is a tool you can use to avoid business bankruptcy by consolidating your debts or loans so that you have an easier time paying off your loans, have a lower interest rate, and have less loans to put up with you. It is a great tool for people that want to take the credit score they have out of the swamp.
So, debt settlement and restoring your credit is the best possible solution. But what if bankruptcy is the only option. Try to do anything you can to deter bankruptcy. The following reasons make it clear that bankruptcy is not a good option. Read through the reasons carefully.
1. Bankruptcy can put a negative mark on your credit for 10 years. That’s a long time in today’s modern world. Committing yourself to a bad credit score for so many years is not a good option.
2. Any time that you get asked whether or not you’ve filed bankruptcy on student loan or home loan, you’re lawfully obligated to answer in the affirmative. Even if you answer “no” 25 years from now, you’d still be committing criminal fraud.
3. A majority of employers are checking on credit reports before they decide on whom to hire. With the Internet advent, more employers are turning to the Internet to check credit reports. Companies are hiring employees on whether or not they have good credit. You might get easy relief in the short-term, but the money that you get costed down the line is not good. You might get higher interest rates, get your reputation maligned, and have your career moves hurt.
4. If you make more income than the average person does in the state you live in, it is normal that you would be issued a mandate to file Chapter 13 Bankruptcy. Chapter 13 Bankruptcy is issued by the court and mandates that you will have to give over your disposable income to creditors if you’re a debtor. Even though you’re paying back the debt, and it all looks good, your credit will still get hurt.
5. The emotional baggage that comes along with bankruptcy can also take a toll on a person. He may feel like he is lost or out of it. He won’t know how to show his face to his friends and family. This is the extreme. But it can still happen to you.