The long-lasting effects of personal bankruptcy are pride in overcoming one of life's most difficult and demeaning experiences and the resolve to build a productive, financially secure future. The federal government designed the bankruptcy process to give people a second chance. Many times people undergoing financial hardship are there through no fault of their own; the final breaking point may have been a job loss, unexpected expenses or huge medical bills. The effects of this process include both a financial and personal results of this heart wrenching decision and action.

The financial results are immediate. There are two types of bankruptcy available to individuals. Chapter 7 eliminates all debts while Chapter 13 allows the consumer to repay the money over a five-year period. A qualifying process determines which bankruptcy is right for the person who wants to file for personal bankruptcy. The required credit counseling helps people make wise choices and provides a roadmap for future financial decisions. Personal results are immediate and welcomed. Creditors can no longer contact the debtor. It is safe once again to answer the telephone; the voice on the other end will not be demanding money, asking embarrassing personal questions, threatening unlawful legal action or suggesting the person rent out rooms to cover the money owed. It is illegal for anyone to contact a person who has started the bankruptcy process; the bankruptcy courts deal very harshly with violators. This protection starts when the papers are filed with the court.

The effects of personal bankruptcy are relief and determination to make life a success this time. It is time to file for personal bankruptcy when the bills cannot be paid and the harassment of the debt collectors interferes with ordinary life, like the fear or refusal to answer telephone. This is a chance to reclaim life and do better next time.