Remember - Bankruptcy is best used for those who feel they will not be able to overcome the financial burdens under which they struggle.

Bankruptcy is relatively easy. Millions of people file for personal bankruptcy every year. For some people, it’s the sensible option. If a medical crisis kept you out of work or left you with extraordinarily high medical bills; if an accident or disease has left you with a disability that reduces your ability to earn an income; or if a divorce has left you with high debts, child care responsibilities, and a reduced income, your debts may be beyond your ability to repay.

But a large and growing number of people who file for bankruptcy are doing it for the second time. For people who’ve arrived at bankruptcy as a result of careless spending and a casual reliance on credit, bankruptcy can be seen as a quick fix that will solve a chronic debt problem. It’s not. Bankruptcy doesn’t get at the underlying root of a debt problem. Only you can do that. If debt spending is your problem, the only way to solve it is through a long-term commitment to debt reduction. It’s your money behavior that needs to change.

The problems bankruptcy does solve:

• Protection from creditors.

• Stop lawsuits in their tracks.

• Stops the financial drain brought on by garnishments.

• Stops foreclosure proceedings on your home.

• Filing Bankruptcy can give you a fresh start in life - a new Clean Slate!

The problems bankruptcy doesn’t solve:

• Bankruptcy will not change spending habits, or future circumstance.

• Although it has become more common and carries less of a stigma, a bankruptcy may be reported as part of your credit record.  There are ways to minimize the negative impact it has on credit reporting.

• Bankruptcy has its place. For people who have gotten into financial difficulties that really are beyond their ability to resolve, it offers a way to make a fresh start on sound footing. But for many—perhaps most—of the people who now use it, bankruptcy simply extends money problems into a lifetime of juggling and worry.

Clean Slate can help you with any negative issues after your bankruptcy is final.