Chapter 8

Starting Over Again with Bankruptcy

In This Chapter

arrow Establishing the pros and cons of bankruptcy

arrow Discovering the eligibility requirements for filing bankruptcy

arrow Understanding the process of filing for bankruptcy

arrow Rebuilding your credit after bankruptcy

Bankruptcy used to be easy. You decided that you were too far over your head in debt, and you went to see an attorney, who made your debts disappear. Presto chango! Not anymore. Today’s bankruptcy is less likely to rid you of all your debts. Plus, some chapters of bankruptcy leave you on a bare-bones, IRS-sanctioned spending plan for the next five years. Ouch.

Still, bankruptcy can be a cure for overindebtedness that threatens to deprive you and your family of the hope for a prosperous financial future. A fresh start is the intent of the law, and, when done correctly and for the right reasons, that’s just what you get.

Equally important is assessing the role bankruptcy plays in your life for years to come as a result of damaged credit and long waiting periods before you can file again, should you need to. With credit playing ...

Get Credit Repair Kit For Dummies, 4th Edition now with O’Reilly online learning.

O’Reilly members experience live online training, plus books, videos, and digital content from 200+ publishers.