Also, not all debts can be discharged in a bankruptcy. Collection accounts fall off your credit report after seven years.At that point, the delinquency stops affecting your credit. Your credit suffers tremendously in the meantime, and since you’re still legally obligated to pay the debt, a debt collector can pursue you until the statute of limitations runs out in the state where you live.Applicants for Federal loans should also keep in mind that even with a good credit score, a bankruptcy that was applied for within 90 days of filing a FAFSA application will result in it being rejected.If you are concerned about your credit scores, you can always check on them with the three major credit reporting agencies.
It won’t prevent you from getting credit in the future, but for a time some credit products will be unavailable to you and others will come at very steep prices.You’ve got several options when you make the decision to eliminate debt.If you’re financially drowning, of course you can declare bankruptcy.SEARCH RATES: If you're considering a personal loan for debt consolidation, first check out the rates at
Moving the balances of your credit card accounts into an installment loan for purposes of consolidation may cause a slight drop in your credit score.There are federal student loans and private student loans. If you have both, you should never consolidate federal and private loans together.