Filing for bankruptcy after consolidating credit cards

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Your credit may be hurt if you run up credit card balances again, close most or all of your remaining cards, or miss a payment on your debt consolidation loan.

More Bankruptcy and debt settlement can reduce or eliminate credit card debt, but they severely impact your credit.

Consider bankruptcy, debt management or debt settlement when either of these is true: Consider a do-it-yourself plan — which can include a combination of debt consolidation, appeals to creditors and stricter budgeting — if you can repay your unsecured debts within five years.

The debt relief industry includes scammers who are eager to take what little money you have.

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Readers also ask When consolidating debt, balance transfer cards let you shift over debts from other cards and charge no interest for a limited time. And while our site doesn’t feature every company or financial product available on the market, we’re proud that the guidance we offer, the information we provide and the tools we create are objective, independent, straightforward –- and free. " With so many websites offering free financial tools, it can be hard to know whom to trust. We believe everyone should be able to make financial decisions with confidence. This may influence which products we review and write about (and where those products appear on the site), but it in no way affects our recommendations or advice, which are grounded in thousands of hours of research. We're on your side, even if it means we don't make a cent.Debt relief is a change in the terms of your debt or the amount that you owe that lets you put the debt behind you more quickly. If you’ve cut expenses to the bone in an effort to pay off debt and you’re only treading water (or still sinking), debt relief may be your best hope for repairing your finances.That could involve wiping the debt out altogether in bankruptcy; getting changes in the interest rate or payment schedule to lower your payments; or persuading creditors to agree to accept less than the full amount owed.

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