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Anyone can get into financial trouble if you always spend more than you make!  Bankruptcy can be a way out but you need to know options because it could ruin your credit.

There are two types for personal use — chapter 7 and chapter 13.  It costs around $300 to file and then paying for an attorney.

But before you file, see if there are any other ways out of your financial crisis.

     Negotiate with your creditors

o     maybe arrange a payment plan

o     lower rates

o     debt forgiveness

Speak to an attorney to weigh out your options

Speak to a credit counselor

Modify a loan or refinance one

Bankruptcy should be your very last option.  It is like a financial death.  It will take some time to rebuild. After a declaration of bankruptcy, a credit score with a “good” rating can drop 150 points. An “excellent” score will take an even bigger hit. You’ll be unable to apply for most types of credit, including credit cards, and you’ll have to 7 years to apply for a home loan. When you’re ready to start rebuilding, take it slow by applying for a secured credit card . After you’ve shown responsible use of a secured card for about a year, try to apply for an unsecured credit card. If you keep making your payments in full and on time, your credit should improve.

For more financial tips, check out Cary Carbonaro’s book:   “The Money Queen’s Guide For Woman Who Want to Build Wealth and Banish Fear.”