I don’t know how I am going to pay off all of my debt .
Do you have a job ?
Yes , but I don’t make enough money to pay all of my bills .
Have you considered filing bankruptcy ?
What is that ?
When you file bankruptcy , you are essentially wiping your financial slate clean .
That sounds too good to be true .
Yes , there are disadvantages to it .
What are the advantages first ?
One of the advantages is that your creditors have to stop collecting from you as soon as you file .
That would be a big help right now .
Another benefit is that once it is all done , you will be able to start from scratch .
That is exactly what I need .
Yes but there are also some very bad disadvantages to filing bankruptcy .
What is the down side ?
A bankruptcy goes on your credit report for up to ten years .
Why would that be a bad thing ?
When you go to apply for future credit , it will be harder to obtain with a bankruptcy on your record .
So if I want to buy a house, I might not be able to do so ?
Exactly , because creditors are more cautious with those that have filed bankruptcy .
I want my credit to be as good as possible .
Do you think you will be able to pay off your debts within five years ?
If I am able to budget well with my current pay , then yes I could .
Then I wouldn’t suggest that you file bankruptcy .
You’re right , I will just have to be better with my money and pay off my debts .
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