what are the negative impacts that can follow a person after he or she files for bankruptcy?

Question

a "fresh start" is not always what happens after filing bankruptcy.

what are negative impacts?

WHAT IS BANKRUPTCY?

Answer 1

Bankruptcy is not a 'fresh start,' and you should not take professional advice from anyone who says it is.

Bankruptcy is a serious thing. You are legally defaulting on your debts, breaking legal promises and commitments that you have made. You tell the government that you are unable to pay your debts, and they tell your creditors that you are no longer obligated to pay them back. So you essentially get a "clean slate" and start "fresh" with no debt (except for certain debts that can't be dismissed even with bankruptcy, like student loans).
The consequences are therefore very harsh (in part to keep people from just filing for bankruptcy out of laziness).

Your credit will be basically ruined for 7-10 years after bankruptcy. It will remain on your credit report, and lenders will not be willing to lend you money for a car, home, or anything else. You may not even be able to get a credit card. If you do manage to aquire financing from some business that lends to "high risk" borrowers, you will pay exorbitant interest rates and fees for that privelege.

Meanwhile, apartment complexes and potential employers often screen credit before agreeing to lease to or hire anyone. Having a huge blemish like that on your report may cause them to turn you down.

Answer 2

Anyone who ever checks your credit in the next decade will know about it - including potential employers. There is no fresh start. If you start borrowing on these rip-off post-bankruptcy offers of credit, you will get yourself right back into a big mess & not have the option of filing bankruptcy again - that is the only reason those snakes offer you credit.

Why not try something different since borrowing has gotten you into a mess? DH & I follow Dave Ramsey's plan (see below). It has been a godsend. We have NO open credit accounts & haven't borrowed a nickel since 2003. We live on a budget & we always have money for new tires, medical deductibles & other big expenses when they come up. Our son follows Dave's advice, too. He is 17, works full-time, goes to community college, drives a paid for car, keeps $1k on hand for emergencies, makes a budget every payday & sticks to it. He is even funding a Roth IRA this year.

You CAN learn to manage your money. You CAN live w/o borrowing. Dave's book "Total Money Makeover" will teach you how & his radio show (also online) will keep you motivated & challenged. I hope you succeed w/money like we have since reading his book.

Answer 3

You will find that if you can get credit, it will be at an astronomical interest rate. After you're bankruptcy is discharged, it will be hard for you to get credit because you can file again.

Answer 4

Bankruptcy stay on her credit reports for ten years. You can reestablish your credit in the meantime, but it still shows up when you apply for a new credit card or purchase.

Answer 5

The most common is that once you have overcome that you are not elegible for a future credit, let's say a car or house or mortage might not be easy to get in the future.

Answer 6

You might have problems getting another loan, including a credit card.

You might have problems getting another job if they check you out financially.

You might have problems getting another apartment lease.

Anyone who has reason to question your financial capability may not give you the most favorable treatment.

Answer 7

Bad credit, high interest rates, etc.

Answer 8

your credit gets totally trashed