You should resort to this only if you have huge debts, no hope of repaying them, and the assistance of a competent attorney. Bankruptcy information will be carried in your credit bureau file for seven years. The Fair Debt Collection Practices Act does offer some protection against abusive debt collection practices. For example, it prohibits harassment, abusive actions, using false statements, and threatening illegal collection practices. The principal limitation of this law is that it protects debtors only against collection agencies, not against attorneys acting as collection agents or against merchants seeking payment.
Consumer loans are a service for which most lenders charge a fairly high price.
If you must borrow, look first to family members, your insurance company, or a credit union. About the BBB 1995 Better Business Bureau , Inc.