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Call Redstone at 256-722-3796 to schedule an appointment with an accredited
financial counselor to discuss your options. Need answers? Send your financial
questions to: aspire@redfcu.org
Need a "get out of debt" plan or just need
someone to review your credit report
with you? Redstone
,
s accredited financial
counselors can help..
Bankruptcy
I'm thinking about filing for chapter 7 bankruptcy. What should I
consider before taking that step?
Bankruptcy should be the very last resort. It is a serious financial decision
that requires careful consideration. Here are some things to think about
before moving ahead:
• Filing bankruptcy can be expensive. Court costs and attorney's fees
add up and are non-dischargeable. ese costs can easily reach $4,000.
• You may lose property. If your assets are worth more than state and
federal exemption guidelines, they can be liquidated, and the proceeds
can be divided up among your creditors. is can include your home,
car, heirlooms, and jewelry.
• Bankruptcy doesn't solve spending problems. Bankruptcy fixes
the issue, not the cause. It won't be much use if you spend more than
you earn.
• It will damage your credit. A bankruptcy filing will remain on your
credit report for 10 years. In addition, it will likely cost you more to get
credit for a long while after that.
