Article Categories
» Arts & Entertainment
» Automotive
» Business
» Careers & Jobs
» Education & Reference
» Finance
» Food & Drink
» Health & Fitness
» Home & Family
» Internet & Online Businesses
» Miscellaneous
» Self Improvement
» Shopping
» Society & News
» Sports & Recreation
» Technology
» Travel & Leisure
» Writing & Speaking

  Listed Article

  Category: Articles » Finance » Bankruptcy » Article

What Are The Consequences of Filing For Bankruptcy?

By Cornie Herring

Bankruptcy may be your quickest way of getting relief from your unbearable debt, but it is also the most damaging action to your credit ratings. Let us review the consequences of filling for a bankruptcy before your make up you decision to go for it.

1. Hard to Obtain Credit

Bankruptcy restrictions apply from the moment the bankruptcy order is made and it is a criminal offence to break them. These restrictions will make it difficult, if not impossible, to obtain credit. If you wish to buy a house in the future, there will be a two-year waiting period after the Chapter 7 case is discharged before you will be deemed eligible for a home loan. When a Chapter 13 bankruptcy case is involved, the waiting period is twenty-four months after the debts are paid off in full. During that two-year period, you will need to have been employed steadily, have no negative entries in your credit file, and kept debt under control.

2. Negative Impacts If You Are In Business

You will not be able to be a director of a company or hold certain offices. You will also have to inform any people you do business with the name in which you were made bankrupt; this may has negative impact on your company's reputation and may discourage your potential customers to do business with you.

3. Lose Your Assets

You may lose your assets which include your home and anything of value. And some percentage of your income will be paid to creditors for 3 years. A poor credit rating due to bankruptcy will follow you for 7 to 10 years. The bad credit stated in your credit report will cause you hard to obtain a mortgage.

4. Family Relationship Impacts

Financial strain alone is enough to break a relationship. The majority of couples failed in their marriage due to money. Bankruptcy may cause negative impacts to your family relationship if your spouse can't accept the fact of bankruptcy.

5. Health Impacts

You may blame yourself on bankruptcy incident and regret on your action. This may affect both your mental and physical conditions. It may cause you to have financial phobia and fear to manage your finances in the futures.

6. Higher Loan's Interest Rate

Bankruptcy filling has the most damage on your credit record if compare to other debt solutions. Your bad credit record will remain on your credit report for 7-10 years and if you are getting any loan after your bankruptcy discharged, your loan's interest rate will be higher than normal.

In Summary

Not all are apparent when considering bankruptcy and not all will apply to you. It is certainly worth familiarizing yourself so that you can make an informed decision when choosing whether or not to go for bankruptcy filling. And it is worth to get consultancies and advices from finance experts to see whether the bankruptcy is your only option; who know, you may find alternatives to this option and bankruptcy can be avoided.

About the Author
Cornie Herring is the Author from "StudyKiosk-Credit Basics" is an informational website on credit basics, debt consolidation and bankruptcy.

Article Source:
If you wish to add the above article to your website or newsletters then please include the "Article Source:" as shown above and make it hyperlinked.

  Some other articles by Cornie Herring
When Your Credit Score Become Important?
Have you ever wonder why your online application for credit can be approved in 60 seconds? Or get pre-qualified auto loan for a car without asking you how ...

Get To Know The Bankruptcy Filling Process If This Is Your Option
Filing for bankruptcy is a very personal decision. Heavy debtors may choose to file a bankruptcy if they see no other way ...

Payday Loan Is High Cost Cash, Avoid It!
Payday loan is a small, short-term, high interest rate loan. It also known as cash advance loan, check advance loan, post-dated check loan, or deferred ...

What Is Accelerated Debt Consolidation?
Are you burdened with debts? Are you finding it harder each month to meet the minimum payments for your debts? ...

What Is A Lien On A Property?
When you use your home as the collateral to get a loan, your lender will have a lien on your property. What does this mean and what are ...

Consolidate Debt With Home Equity as Security
In these days, hard to find a person with zero debt and most people have more than one debt. You may ...

  Recent Articles
Five Ways How A Credit Monitoring Service Can Help Post-Bankruptcy Individuals Rebuild Their Credit
by Dulce Azogue

Dead People Cannot File Bankruptcy
by Victoria Ring

Get To Know The Bankruptcy Filling Process If This Is Your Option
by Cornie Herring

What Are The Consequences of Filing For Bankruptcy?
by Cornie Herring

Personal insolvencies are at record levels across the UK: Which way for the debtor?
by Martin McAllister

Smart debt recovery with alternatives to bankruptcy!
by Kirthy Shetty

What are your alternatives for filing bankruptcy?
by reethi rai

Do Bankruptcy Alternatives Work?
by Susan Davis

Can You Choose the Type Of Bankruptcy Filling?
by Cornie Herring

6 Steps to Take before Bankruptcy
by Cornie Herring

5 Easy Steps to Rebuild Your Credit after Bankruptcy
by Cornie Herring

Closer Look at Bankruptcy
by Gina James