Debt can be a serious challenge for many people. It does not take long for this debt to become quite large and difficult to manage. Even a small incident, loss of work, or unexpected bill can begin a snowball effect that can create financial devastation. For many people, it can be near impossible to get out from under this debt. Debt can wreak havoc on so many aspects of life that it can create a loop that only goes to increase the debt and financial issues.

How debt and bad credit can hurt

Most people understand that any debt or missed bill payments can have negative effects on their credit score. They also understand that a negative credit score can limit a person’s ability to get new credit. Unfortunately, many people do not realize that poor credit can have negative effects on getting a job or place to live. Many rental companies and businesses will perform a credit check on applicants. Applicants may face denials of jobs and rental opportunities due to a poor credit rating.


When debt becomes overwhelming and begins to affect a person’s ability to work and live, it may be a good idea to look into bankruptcy options. A bankruptcy can provide a method for managing this debt. Although it may take awhile before credit completely recovers, a bankruptcy can stop the accumulation of poor credit reports. Fortunately, there is Free Bankruptcy help available to provide people with information on the options available to them.

Chapter 7 or 13

There are two different types of bankruptcies that can assist people with overwhelming debt. Which to choose often depends on the current situation of the debtor. Those who have a regular income and assets may opt for chapter 13. This option provides a restructuring of debt to be paid off in a certain amount of time. For those with little or no income, chapter 7 can provide a discharge of this debt. However, any assets beyond a home and personal vehicle may be liquidated to pay lenders.

Debt is an issue many people face throughout their lives. Almost everyone carries at least some debt. The smallest of unexpected incidents can create serious issues that can make it impossible to get out from under this debt. Fortunately, there are methods for helping in these difficult situations.