“Is Filing for Bankruptcy a Good Cure for Your Debt?”
By Diana Estigarribia, iVillage
November 26, 2002

When you are over your head in debt, bankruptcy may seem like the perfect cure-all. It promises to wipe the slate clean. More than 1 million people file for personal bankruptcy every year, seeking relief from debt collectors and the weight of their bills.

But filing for bankruptcy is not a decision to be taken lightly.

Bankruptcy’s aftereffects are long and damaging. Filing remains on your credit report for up to 10 years, even if you don’t go through with the process. Bankruptcy remains tied to your record whenever you apply for a job with a salary above a certain amount, or insurance or loan above a certain amount, even after the 10-year period has passed. Most important, bankruptcy does not change your financial management habits.

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