About 60 percent of those who sign up for credit counseling drop out before completing the program and a significant number of drop-outs go on to file bankruptcy. Many debtors find the four year program to be too rigid and difficult to stick with, and those who stay with it and complete it find that they have no extra money each month. In other words, they're basically living paycheck to paycheck while most of there income is sent to pay creditors. It's not a fun way to live for four years, particularly, when one considers that most of the debt can be wiped out in a few months by filing Chapter 7 bankruptcy.
Probably the biggest and most obvious problem with filing bankruptcy is how it will affect your long term credit. A bankruptcy will likely show on a credit report for at least seven years and will make obtaining future loans and other forms of credit more challenging.
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