Sometimes, personal debt becomes so unmanageable that filing for bankruptcy can bring real relief.<br />Going bankrupt can keep you from losing your home, your car, having your paycheck garnished, or having your utilities shut off.<br />But according to Business Insider, bankruptcy is no walk in the park and has long-lasting consequences on your credit record.<br />With Chapter 7 bankruptcy, all eligible debts are discharged immediately. It will stay on your credit report for up to ten years.<br />In Chapter 13 bankruptcy, you agree to a three- to five-year repayment plan to partially or fully repay your debts.<br />It can stay on your credit report for up to seven years. In either case, you will need to hire an attorney, which can be expensive.<br />To rebuild credit, keep making on-time payments towards any debts not included in the bankruptcy. Also, consider getting a secured credit card.
