Bankruptcy

What a country! In America, where the pursuit of happiness is guaranteed, filing for bankruptcy is likewise protected by the law in most cases (though the newest legislation, enacted in 2005, is somewhat more restrictive). Whereas in most cases of an individual’s attempt at credit repair a hardship letter is the gun, and a loan modification the exploding bullet, the government allows both Chapter 7 and Chapter 13 filings the opportunity to start over with a clean slate and without a bloody battle. (Well, mostly.) Bankruptcy does not rank high on the happiness meter, yet it does serve as a jumping-off point for creditors who otherwise have free rein to harass with phone calls and make threats through the blackmail that are credit reports. I know it’s trendy to rail against big government, but … The protection offered by bankruptcy court and the counsel of a qualified attorney is reassuring when the world seems to be against you. Bankruptcy is a life preserver. My best advice would be, keep the ship from sinking in the first place -- pursue a loan modification, write the hardship letter, stay solvent. Here are some more thoughts on the matter: