What are the Consequences of Filing Bankruptcy?
Filing bankruptcy will not prevent you from getting credit or a credit card. There are lenders who target persons who have recently gone bankrupt and you will probably get offers for credit cards in the mail. Having at least one credit card for emergencies and for travel is useful. In the period after your bankruptcy filing, you should understand that you may not get the best interest rates for loans and credit cards.Persons who have filed for bankruptcy are protected from discrimination in government employment and governmental licensing.
A bankruptcy does stay on your credit report for 10 years. However, the fact of a prior bankruptcy is less relevant than what you have done since filing. Persons who have rebuilt their credit and who have down-payments available are sometimes eligible for mortgage loans on the same terms as anyone else after two years.
Persons considering the negative effects of bankruptcy on their credit usually have bad credit to start with. At the very least they will have outstanding debt on their credit reports, so although bankruptcy hurts your credit, it may improve things immediately, and almost always improves things in the long run.
Please remember that credit is usually what gets people into a jam in the first place. Credit card companies are not doing you a favor by extending credit, they are businesses out to make a profit at your expense.
Many persons are concerned about others finding out that they have filed for bankruptcy. A bankruptcy filing is a public record so if someone wanted to go to the trouble to find out whether you have filed, they could do so by searching court records. It is very unusual for a newspaper to print bankruptcy filings but they would have the right to do so if they wanted and this occasionally happens in high profile cases. Employers usually do not find out about bankruptcy filings, but the trustee could contact an employer in order to verify income.
Mortgage and Credit Expert James Spray regularly works with Gauss Law Firm Clients here. We have extensive, competent resources to help our clients. www.gausslaw.com.
If you are concerned about the effects of filing bankruptcy, we offer a FREE phone consultation where YOU SPEAK DIRECTLY TO THE ATTORNEY. All discussions are confidential and you will be treated with respect- we know that 'bad things happen to good people' and we enjoy helping persons get relief from creditors. Call (303) 670 - 4242 in the Denver Metro Area, or (303) 501-4028 After Hours Until 8 PM please Nationwide toll free.