Bankruptcy

Bankruptcy is a legal declaration of the inability to repay debts and should be viewed as a last resort. Bankruptcy has a severe impact on credit rating and remains on a credit report for ten years. Furthermore, bankruptcy is not a solution in all cases. Federal student loans, federal tax debt and child support are all exempt from bankruptcy protection. Bankruptcy agreements vary but there are two types of agreements that most people choose: Chapter 7 and Chapter 13.

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