The Truth of Credit

In 2005 Congress passed the “Bankruptcy Abuse Prevention and Consumer Protection Act”. In effect making it much harder to file and considerably tougher to avoid paying your debts. All day we hear debtors threatening bankruptcy and very often some have literally 2 or 3 accounts that are charge offs sometimes don’t total over $6,000 in revolving debt.

Please go through this small checklist before you even start thinking of filing:

taking out Payday Loans? (which by the way are illegal in NJ)

begging for loans from friends and family?

about to lose your job?

behind in your taxes?

receiving foreclosure notices?

behind in child support or alimony?

gambling to try and make ends meet?

sick and unable to even go to work?

Pretty much if you don’t fall into one of those categories your being lazy. To be clear obviously the bank wants to settle out your accounts if it gets to the “R-9″ stage. However, bankruptcy in the end does not hurt the banks they just write your account off during tax time. Remember seven years is long ass time.

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