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Financially Fit

What You Should Know About Bankruptcy


Nationally, 794,960 people filed for bankruptcy in 2016. Those filings cost financial institutions millions of dollars. Those losses require affected credit unions to charge more for loans and pay less on savings for other members. And money isn't bankruptcy's only casualty.

Bankruptcy's aftereffects can be long term and devastating. It mars a debtor's credit record. It causes the debtor loss of property and the right to some financial services. But that's not all. Some people who file bankruptcy can't get a mortgage and are stuck paying rent for an apartment even though they’d like to have a place of their own. Others have trouble finding jobs because some employers run credit reports on prospective applicants.

One of the biggest things most people going through bankruptcy fail to realize is that, with the help of their credit union, they might have been able to avoid bankruptcy.

The first step to better finances is to work with the professionals at CES Credit Union and other creditors to pay off your debts like advisers at the National Foundation for Credit Counseling (NFCC). The NFCC is a nonprofit organization made up of member agencies that offer free or low-cost financial counseling and education.

NFCC suggests you call the credit manager, merchant, or lender and explain why you're having trouble keeping up with payments. A job loss, illness, or other family emergency can create temporary financial difficulties.

Most creditors will work with you because the alternatives (repossessions, foreclosures, and lawsuits) are expensive.

Your next step is to discuss future financial prospects with CES Credit Union and work out a debt repayment plan. And remember to stay in contact with CES Credit Union and other creditors until you resolve your financial problems.

We’re here to help. Stop by or call today at 888-397-1136.

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