Bankruptcy Credit Repair
Bankruptcy, for all intents and purposes, is a last ditch effort to clear your bad credit. When you file for bankruptcy, you're saying to everyone you owe money to "I don't have the cash on hand to pay you back, nor do I think I will in the future. Please take any of my possessions that you think will cover my debt to you". You're signing over everything you own that has value to someone else, that's a fully paid for car, house or anything you have that is made of precious metals (gold, silver or platinum). And after the creditors have had their fill, then you get your debt discharged.
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To start bankruptcy process, you first need a lawyer. Someone has to advise you on how this process is going to affect you and the general overview provided here does not cover everything. So get yourself a lawyer that you can trust. From there you will have to disclose all of you debts. You're going to want to have a number in mind of what your debt comes to. Once you file, it will be marked on your credit report and every creditor you owe money to become aware of it and get there piece. So all you have to do is go before a judge and declare everything that you own. Every ring, necklace, watch, gem, jewel, or anything that can be put up on auction will be taken. You get to keep your clothes because, unless you're famous, no one will want your second hand apparel. Some good news is that you may not have to pay back every cent that you owe, but the bad news is that you don't get to decide. It is entirely up to the creditors if they feel that they have recouped enough of their money or not. So pack your suitcase and call a friend, everything else is going to the highest bidder.
Now what you get out of this whole deal is simple. Your creditors will discharge any remaining debt you have with them, you stop getting those collection calls from morning till night and your credit score goes back to zero. Every bad mark and deduction of points is erased and you get clean slate. Though I believe that is only for the past seven years, so keep that lawyer around so you can get the exact number. From there you have to rebuild your credit and do things right this time around. It won't be easy because with no credit, you'll mainly have to rely on the money you have in your pocket and in the bank.
