You Could Be in Better Financial Shape in a Shorter Period of Time if You File For Bankruptcy

Vance: Without a doubt, if you have $50,000 in credit card debt, your average monthly payment is going to probably be between $1,000 and $1,500 a month. Just making minimum payments on the credit card debt, you'll be paying the credit card debt for about 60 years with the interest rate they're charging.

Interviewer: For people experiencing trepidation about filing, here's yet another reason. It's actually maybe one of the best things you could have done, because again, you'll save yourself years of heartache by doing it.

Vance: Without a doubt. The bankruptcy and your memory of the bankruptcy will be long gone by the time you finish paying off that $50,000 of credit card debt. You'll have your fresh start. In two or three years you're buying a new home.

Bankruptcy Filing Has Evolved and No Longer Counts against Your Future Credit Options

Almost immediately you're able to buy a new car. It's not the black mark it used to be 25 years ago if you filed bankruptcy. Yes, you were pretty much doomed for 5 to 7 years. It's just not happening that way anymore.