2007-08-07 13:07:43 · 6 answers · asked by Da Bears. 2 in Business & Finance ➔ Other - Business & Finance
The stigma attached to bankrupcty has waned in recent years...
...It is true that bankruptcy hurts your credit rating. It does affect your chances at landing jobs at certain places. It certainly will decrease your chance s at getting loans in the near future.
But you know what...If you are having an extremely difficult time working your way out of debt, if debt consolidation services are not an option, and if debt collectors and mailings from debtors are driving you insane, it's best to go ahead and file.
It may hurt you in the short term, but guess what? As early as two years after discharge, you'll be eligible for a lot of things. If you pay all bills on time, your credit score will rise over time. And if you keep a nearly flawless record after 7-10 years, you'll be set.
Bankruptcy should be the last resort, but it's not like life is over if you file. As a matter of fact, just to give you an example, car dealerships have a habit of sending mailings, offering deals to those who have been recently discharged.
2007-08-07 13:32:23 · answer #1 · answered by SoulDawg 4 UGA 6 · 0⤊ 0⤋
Well, at this point, unless you have absolutely NO income, you will end up paying back the majority of your debts b/c it is virtually impossible for an employed person to file Chapter 7 now (thanks to MBNA - which wrote the legislation). Also, you will create a big nasty black mark on your credit that will hinder your ability to change jobs b/c credit checks are very common for many jobs now. Also, you will repay 100% of any secured debt if you wish to keep the asset (like your car) & you will repay every penny of any federally secured student loans. Soooo, unless you have a fortune in credit card debt & no income, bankruptcy will probably just make your life miserable. BTW, you should know: If you file Ch 13, you will be treated (in terms of how much money they let you KEEP each month) like you committed income tax fraud. Once again, the big banks BOUGHT OFF Congress & the President. ALL the Republicans who voted & 40% of the Democrats who voted, voted FOR this garbage legislation.
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2007-08-07 20:18:48 · answer #2 · answered by Tom's Mom 4 · 0⤊ 0⤋
not being able to get any new credit for at couple of years and even then, int rates will be higher. You may be forced to go chap 13 vs chap 7, which will still require you to pay back your creditors. Your car insurance rates may go up.
2007-08-07 20:14:13 · answer #3 · answered by Anonymous · 0⤊ 0⤋
You can't find jobs that are financial related, you can't migrate or take/accept overseas postings/jobs; you can't apply for loans. These are but some of the negatives. I suggest you work towards repayment. It may be painful for the time being but its definitely in the right direction.
2007-08-07 20:13:03 · answer #4 · answered by SGElite 7 · 0⤊ 0⤋
cons
not everything gets bk'd
studen loans don't get bk'd
irs taxes don't get bk'd
it stays on your report for 7-10 years after discharge
mortgage lenders shy away from people who bk'd on their house.
pros
you get out from under the financial stress and strain of previous loans
you get to start from scratch
rebuilding your credit and learning a lesson
2007-08-07 20:13:22 · answer #5 · answered by Anonymous · 0⤊ 0⤋
hi,
seven years of not being able to get the things that you want out of life.
2007-08-07 20:13:28 · answer #6 · answered by Sonya K 4 · 0⤊ 0⤋