Don’t Declare Bankruptcy.

I’m sure that you’ve read the articles that talk about how Barack Obama wants to pass laws that make is simpler for certain citizens to wipe away their debts. But beware of bankruptcy – no matter how simple it is – because it can hurt you for decades.

Yes, decades!

If you want the inside scoop on this, read Lauren Tara LaCapra’s article on today’s TheStreet.com. In it, she shows you how bankruptcy – even a simple one – can really effect your life.

I guess this whole bankruptcy discussion began back in 2005 when new laws made it tougher and more expensive to file for Chapter 7 or Chapter 13 personal bankruptcy. And Chapter 11 is no picnic, either. But now, Obama wants to give a “fresh start” to about half the people who declare bankruptcy – military families and those hit with medical bills – but making it easier to wipe out their bills.

One thing B.O. doesn’t seem to be looking at is the long-term effect of going bankrupt. According to Lauren, it can take over 20 years for bankruptcy filers to reach the same financial status as their peers who did not declare bankruptcy.

So, the “fresh start” just might not be so “fresh” by the time a bankrupt person can get back on his or her financial feet again.

If you’re thinking about filing for bankruptcy, please check out this article before you go any further. And let us know what you think.