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Subject:  Re: Credit Card Debt - Best Approach? Date:  10/8/2012  1:10 PM
Author:  Gingko100 Number:  306031 of 312189

Bankruptcy is very much driven by state law, so he would really need to review details with an attorney in his state to discuss details.

Upside: it clears your debts to a certain extent (student loans and IRS being notable exceptions).

Downside: Complicated; You have to declare it forever, even if it drops off your credit report; For chapter 13 rather than chapter 7 it doesn't fully discharge them but sets up a structured payment plan; It doesn't do anything to solve the problem of someone with inadequate income or prone to living above their means, as it won't create a means to pay debts.

I think if he really does want to look into bankruptcy he should consult a local attorney to find out options. Sometimes the state attorney general or the state bar have low cost legal services available that can help advise on things like this.
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