Considering bankruptcy? Here's what you need to know.

Written by
Peter Dunn

Hey, Pete!

My wife and I are thinking of filing bankruptcy. We have been told it would be the best way to get us out of our debt and improve our credit. Our credit scores are both in the low 500's. My wife is switching from her teaching position to a new corporate job and has about $40,000 in her two 401A and retirement funds from the school that go with her and are available to cash out if she wants. Would it be wise to use about $15,000 of it and pay off everything we have in debt or file the bankruptcy? I know neither are a great choice, but we want to improve our credit and get out of our debts and be able to purchase a home in the future. Any advice you can give will be greatly appreciated! Thanks!!

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