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The world remains horrified at the tremendous destruction caused throughout the Gulf Coast recently by Hurricane Katrina. An unknown number of people are dead and thousands more are homeless, jobless and completely destitute. It may be months before the city of New Orleans is inhabitable again, and in the meantime, most residents of the city will have little or no income. This is a problem, as most people will continue to have payments due for credit cards, auto loans and mortgages. A number of people will probably be forced to file for bankruptcy as their debts continue to pile up
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Bankruptcy and Your Credit
Bankruptcy and credit are directly linked to one another. Credit is how many people run into trouble with their finances, and ironically how they remedy their financial problems at the same time. Credit availability and the encompassing pressure to maintain a good credit ranking will often allow lenders to form prejudices. Many times this can make be the difference between receiving, or being denied, a large loan.
When someone goes bankrupt several things take place. By filing for bankruptcy you acknowledge that you are not able to pay your debts and must be relieved from having to pay
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