A sudden loss of income or employment, rising medical expenses, a divorce, or a natural calamity can quickly wipe out a person's savings. For many, bankruptcy provides a second financial opportunity. In certain instances, it may alleviate tremendous strain and provide the opportunity to start over. Generally, filing for personal bankruptcy is a last resort. Despite the fact that it should not be entered into carelessly, it may prove to be a beneficial resolution for you. To learn more about personal bankruptcy, please peruse the articles provided below.
As a consumer of credit, you must be crystal clear on one issue: personal bankruptcy IS BAD FOR YOUR CREDIT!
Contrary to popular belief, filing for bankruptcy does not """"clear up"""" your credit. A bankruptcy will stay on your credit report for seven to ten years. Many individuals believe that declaring bankruptcy and obtaining a debt discharge will result in a fresh start for their credit rating and open the door to new credit rating opportunities. Do not trust it! Credit restoration after bankruptcy is a lengthy process, but it is possible. Do not believe that the interest rate a credit card company will charge you following a bankruptcy will be the same as it would be for a consumer without a bankruptcy.
Other hazards include the Internal Revenue Service and student loans, as well as a number of retail companies that will not discharge your debts. The effects of personal bankruptcy may linger long after the procedure has concluded. This does not imply that bankruptcy is always the incorrect decision. In cases of elderly debtors or when property is at risk, bankruptcy may be a viable option; however, having one or two poor credit score decades and poor credit history references on your credit report is much easier to explain to lenders than a bankruptcy filing. Before making a decision that could affect you for a very long time, such as declaring bankruptcy, give it careful consideration.
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