Did you know that in 2012, over 1.3 million Americans filed for bankruptcy? Debt is an issue that an even larger number of Americans face, and between creditors calling and trying to get caught up with payments, the situation can easily become very confusing and highly stressful. Here are several basic questions and answers you should know about bankruptcy in order to determine if it is the right financial choice for you.
1. Does bankruptcy permanently ruin credit?
No, but it will impact it for a while, so keep this in mind if you are planning to try and, for example, buy a house in the near future. A Chapter 7 bankruptcy will stay on your credit file for ten years, and a Chapter 13 bankruptcy will remain there for seven.
2. What is the difference between Chapter 7, and Chapter 13 bankruptcy?