Common Effects of Declaring Bankruptcy
Author: cecilia holmes
Many consider bankruptcy to be a terrible option which should never be used except in the most drastic of circumstances. Others see it as an opportunity to begin again by wiping out past debts, and they may see bankruptcy as an option which should be considered sooner rather than later. Whatever the case may be, it’s true that bankruptcy is a legal and legitimate way to deal with excessive debt that is beyond your ability to pay.
Nevertheless, bankruptcy should not be taken lightly as it will have long-term effects on your financial life. It may be a good option for your situation, but this requires careful consideration of all of your options and sitting down with a professional (like a bankruptcy lawyer). Still, you may be wondering about one important question: what are the negative effects of declaring bankruptcy?
Well, it has been said that declaring chapter 7 bankruptcy (which seeks to eliminate most or all of your debts) is the ultimate admission of financial defeat. As such, it will stay on your record for about 10 years and thus seriously damage your credit rating. This will make it more difficult to obtain a loan for a car or house (or for anything else for that matter).
It is not impossible, however, to obtain credit after declaring bankruptcy, but you’ll probably end up paying a much higher interest rate as a result. You should also realize that your credit can improve over time if you work on improving your financial habits. If you take bankruptcy as a fresh start, you can use your second chance to build a much better financial future. This is a serious matter, but you should know that there truly is life after bankruptcy if you have the patience and discipline to rebuild your credit.
Another possibility that you may not have considered is that innocent creditors will be hurt as a result of your filing bankruptcy. This is particularly sad when you’re dealing with small businesses who extend you credit and may be hit hard if their loans are not repaid. This should be taken into consideration, but ultimately you have to do what is best for you and your family.
There are many alternatives to bankruptcy that you should seriously consider, as it is always best to fulfill your obligations and pay your debts off. However, if you, with the help of a financial adviser and attorney, determine that it is the only option for you, rest assured that there is life after bankruptcy.
Don’t let the fear of your debt take over your life. Get the facts about bankruptcy and learn how to get control of your debt. To learn more about the effects of declaring bankruptcy visit us at http://personalbankruptcyquestions.org
Article Source: http://www.articlesbase.com/personal-finance-articles/common-effects-of-declaring-bankruptcy-884599.html
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I am Canadian. How can I check my credit online for free or by phone?
I declared bankruptcy about 15 years ago; will it still be on record? I’ve never had a credit card. I now need to establish credit.
Thank you all so much! I’ll mail my request in and see what happens.
Here’s another question: I’m buying a condo soon, so that should help with my credit; is getting an in-store credit card a good idea? Can it help to eventually get a credit card?
Is there a credit card available for folks who recently declared bankruptcy?
I would like to get a credit card with about $300. available credit to purchase my ink cartridge and computer supplies online. Please no lectures about credit card addiction. I became disabled and had to declare Chapter 7 recently. Thanks for your input.
Bankruptcy questions..?
I would like advice/information from anyone familiar with bankruptcy laws. My main question is: if I stop paying my creditors, but continue to pay the 3 I have a co signer on, will the co signer be okay? I hope to declare bankruptcy within a few months, because I am unable to cope with what I’ve done. There is a lot of information online about bankruptcy, and I plan to call an expert, but I hope to get something from posting this. My co signer is in the Army by the way, so I don’t know if he would get in trouble because of MY individual debt…
i declared bankruptcy and I got it,but need the papers that state it went thru.can anyone help me find in ky?
I’m trying to buy a house and am in the process of moving and have misplaced my papers declaring it. I live in Ky and want to know if there is an online place I can go to find it and print it or have it sent to me?
How can I find out if someone (a person) in San Francisco CA has declared bankruptcy?
Can I look it up online? Where? Thanks.
Call your bankruptcy attorney they would have a copy on file.
I am sorry that you had to declare bankruptcy. You probably cannot get a credit card while you are petitioning for bankruptcy. Those creditors will be afraid that they might be added to the list of creditors. But it is funny: once your bankruptcy is discharged (finalized), you will get al lot of offers for credit cards — because they know you cannot declare bankruptcy again for a long time. Beware, the credit card companies offering you credit will have very high interest rates. So I suggest that you do not carry a balance and pay the each statement completely. To rebuild you credit, you might try applying for a secured credit card, if you just need the card for convenience purposes.
There are two organizations that house your credit file in Canada; Trans Union and Equifax.
You can get your file immediately by paying a fee of about $15 or you can get it for free by requesting it by mail. It takes about 2 to 3 weeks to get your credit report back.
See the links below for more information.
Also, if you see incorrect information on your report you have the right to have it corrected promptly. I have provided links to do this as well.
I hope this helps!
He would if you fault his cosigned debt…get a lawyer…