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ElecTel Cooperative Federal Credit Union
Financial Education
Think Carefully Before Filing

Potential changes in bankruptcy laws are getting a lot of media attention these days. Some consumers are hurrying to file bankruptcy before the laws change - thinking this may be their last chance. But before you jump on the bankruptcy bandwagon, think carefully about the downside to your decision.

Facts to consider about Chapter 7 bankruptcy:

  • Filing bankruptcy can be expensive: Court costs and attorney's fees add up - this is money that could be spent bringing past-due accounts current, or making payment arrangements.
  • You may lose property: Your assets, including your home, car, heirlooms, and jewelry, may be liquidated and the proceeds divided up among your creditors.
  • It doesn't solve spending problems: Bankruptcy won't be much use if you spend more than you make. Because high-cost credit is available even after discharge, many people quickly descend into debt again.
  • It may jeopardize your relationship with ElecTel Cooperative FCU: If ElecTel Cooperative FCU takes a loss on an account, we may not extend the benefits of membership to you in the future.
  • Not everything can be discharged: You can only walk away from such unsecured debts as credit cards and signature loans. So if a good portion of what you owe consists of student loans, tax debt, legal fees, or back child support, bankruptcy won't help.
  • Bankruptcy will stay on your credit report for ten years: The damage to your credit report can prevent you from renting an apartment, buying a home or car, or even getting insurance. And many employers are now pulling credit reports to determine a candidate's responsibility and stability, so even your future job may be at stake.


Main Office: PO Box 27306, Raleigh, NC 27611
919-872-2395 | 800-849-5600 | fax: 919-876-8018