So after you finally got to the point where you couldn’t do it anymore and you decided that you had to file bankruptcy, what happens?
Well, if you file Chapter 13 you will, of course, still be paying back your debt at reduced rates. But you may still have most of your assets.
If you filed Chapter 7, you may have lost some assets but you’re essentially free and clear.
The bankruptcy will stay on your credit report for 10 years and everyone will tell you that it is near impossible to get credit for awhile.
But watch you mail the next day and the day after that and the day after that. The car dealers want you to buy a car. They’ll help you finance. They want you despite the fact that you just declared bankruptcy.
It may be at higher terms however.
There is more to life than just cars, though. Your chance of getting a mortgage is slim and none. Right now, mortgages are difficult to come by for the non-credit-challenged! Your chance of getting a decent credit card is also not good. You may have to start out with a secured card.
No matter what, though, you need to make a commitment to get your finances in order and pay whatever bills you have on time, every time.