Finance & Bankruptcy Advice

Many Americans run into credit card debt like a bad habit. There are many options in winding your way out of nasty credit tangles, such as applying for a no annual fee credit card that won’t add an extra burden onto your already dismal debt nightmare. Some are also turning to bankruptcy as a way out of financial fiascos, but what must you need to know before taking this route?

Bankruptcy Facts:

• Bankruptcy is defined as a legal declaration of a person or persons inability to pay off creditors.

• At times, a creditor may issue a bankruptcy petition against those who owe them cash.

• A “stay” is when a debtor is protected from any further credit accusations for the remainder of the bankruptcy filing process.

• Reorganization bankruptcy-allows those in debt to partially pay off their debt while straightening out their money woes.

• Liquidation bankruptcy-This means exactly what it says—a debtor’s assets are passed off to creditors to settle what they owe.

• A debtor doesn’t have to be broke to file for bankruptcy…think Donald Trump.

• The main reason to file for bankruptcy is usually that a debtor cannot keep up with payments, therefore plunging into deeper debt.


• When you file for bankruptcy, it stays on your record for about 10 years. That’s lengthy, but impermanent.

• You will face high interest rates on loans and mortgages of any kind.

• It is considered bankruptcy fraud to pay back one creditor and ignore another under the Bankruptcy Code.

• Bankruptcy filings dropped nearly 70% last year according to the Administration Office of the U.S. Courts.

Although a declining number in those petitioning for bankruptcy is great news, many citizens still face late payments, high interest rates and unresolved debt. Maybe you forgot to pay off that speeding ticket you got in Long Island one night in college. Whatever your circumstance, bad credit can take its toll on every aspect of your life.

A recommended first step to a new credit beginning is to apply for a no annual fee credit card. These are among the best credit cards to choose from, as yearly payments are non-existent. 6StarReviews.com is a site that documents Discover More Card in their no annual fee credit card reviews.

Discover More offers money-strapped cardholders cash back bonuses, as well as the option to cash in or get gift certificates for their rewards points. A great way to heal your credit history is to stop paying when you don’t need to!