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Bankruptcy Questions Rising As More Consumers Struggle Financially

If you have bankruptcy questions , you’re far from alone. According to one barometer, the number of U.S. citizens filing for bankruptcy protection is rising to record numbers. You’re far from the only one in need of bankruptcy help today.

The American Bankruptcy Institute recently released its October numbers, and they weren’t good. According to the institute, bankruptcy filings by U.S. residents rose past the 132,000 mark in October. That’s 1.4 percent more filings than in September.

The news keeps getting worse: U.S. consumers are on pace to file 1.6 million bankruptcies in 2010. The number of filings through October, a gaudy total of 1.3 million, is worse than the 1.2 million bankruptcy filings that consumers made during the first nine months of 2009.

So, yes, a growing number of consumers have questions about how to claim bankruptcy. Many others are wondering if they have enough financial wherewithal to avoid bankruptcy. Still others are determining whether Chapter 13 or Chapter 7 bankruptcy protection is right for them.

If you’re looking at your own finances and wondering if bankruptcy is the right move for you, make sure to carefully consider the consequences. Despite what some critics might say, declaring bankruptcy is far from the equivalent of a “Get Out of Jail” card. In fact, it comes with some serious consequences.

Chapter 7 bankruptcy, in which most of your debts will be eliminated, will remain on your credit report for 10 years. During this decade, you’ll struggle to qualify for home loans, auto financing, or credit cards. It’s not easy living today with low credit scores, and a Chapter 7 bankruptcy filing will certainly leave you with them.

If you choose instead to file for Chapter 13 bankruptcy, in which a judge sets up an affordable repayment plan for you, you’ll still face serious repercussions. This form of bankruptcy protection remains on your record for seven years. That’s not as bad as 10, but it’s still an awfully long time.

Seeking bankruptcy help is expensive too. The fees associated with filing for bankruptcy have risen, and bankruptcy attorneys are hardly inexpensive. It seems cruel, but the people who face the biggest financial hurdles have to shell

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