The Negative Impact of Filing for Bankruptcy
Author: Chad Fisher
Do you think you may have to file for bankruptcy? This is something that no one wishes to do, but there are certainly instances in life when it is impossible to do anything other than filing for bankruptcy. Although this is not favorable, it is done in many instances to avoid legal action on the debtor.
There are negative impacts for filing bankruptcy and it is important to know what these are. One of the most important negative impacts to be concerned about when it comes to filing bankruptcy is the impact it will have on your credit rating. Filing for bankruptcy will immediately cause your credit score to spiral downward so you will want to be sure you do all you can to avoid filing bankruptcy if at all possible.
Also, not only will bankruptcy negatively impact your credit rating, but will additionally make it extremely difficult to get a loan. Most of us are aware that filing for bankruptcy is not the ideal solution to our financial woes because doing so can make getting a loan extremely hard to do. There are many times in life that loans are a necessity and it will be very difficult to get through life without ever getting a loan that is for certain.
So, consider all your options prior to filing for bankruptcy because there are others you may wish to consider that can certainly have much less of a negative impact on your credit score. It is of extreme importance to have the absolute highest credit score possible because if you don’t you will certainly pay for it. If you are able to get a loan, the interest rates will be much higher and your probability of getting a loan will be greatly diminished.
Article Source: http://www.articlesbase.com/bankruptcy-articles/the-negative-impact-of-filing-for-bankruptcy-1355973.html
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What happens if a car is exempt (in a chapter 7 bankruptcy), but you have a loan and co-signer?
I’ve been researching chapter 7 bankruptcies online…I’m thinking about filing. I read that the exemption for motor vehicles in Kansas is $20,000. My husband and I have two cars. Both cars combined are worth less than $20,000, but we have loans on them.
If our cars are exempt, will we still owe on the loans after bankruptcy is complete? My dad is a co-signer on my loan. How would he be affected if we file bankruptcy while I still owe on my car? I only owe $2500. Should I try to pay my loan off early so that I can file without hurting my dad’s credit?
We owe $15,000 on the other car. Would we have to pay it off right away, even if it’s considered exempt?