How bad is it if you file for bankruptcy?

Answer 1

The consequences of bankruptcy differ according to which chapter of bankruptcy a person or business is filed under. But for the most common, Chapter 7, all debts are forgiven but banks may liquidate property, wages may be garnished, and credit scores receive a very severe blow. The article below goes into more detail concerning the effects of bankruptcy.

Answer 2

Although filing for bankruptcy essentially ruins your credit for 10 years, it may be your best option if you are in a situation where your debt is increasing while your income is decreasing and you need to stop the cycle. The credit aspect, which will have repurcussions when it comes to trying to buy a house, car, etc in the the future is typically seen as the worst part of filing for bankruptcy.

Answer 3

A black mark on your credit report. This and most emplyorers ask you if you have ever filed for bankrupcy. This is one of those questions durning an interview that is best answered with a no so staying away from it best you can is probably in your best interest... however I think I heard Donald Trump filed for it a couple times and now the man is looking at running for President so... who knows? I have heard that not even God can make sense of tax law.

== Ans ==

The first answer here is almost beyond contempt with foolishness or perhaps it is ignorance! Certainly not cleverness.

Most employers run a credit check, if not more, before or shortly after hiring. Lying in the application process is always grounds for termination "with cause" at any point, and of course may even be criminal. Donald Trump NEVER declared bankruptcy in any way. Some of his corporations (the businesses he AND many others may own) have. Bankruptcy is NOT a tax law in any way. While there are a tax aspects to bankruptcy (as there are with any financial matter), it is totally separate in all legal respects. It even has it's own court system, totally independent of all others.

Bankruptcy is financial failure. The credit and other effect effect are a reflection of this. Frequently people who do not show ability in their own financial affairs are poor decision makers in other things, as well as being subject to pressures by others who will take advantage of their weakness. Having to prove one has learned how o prioritize and exercise the control needed to properly handle their affairs, and legal promises to what they will do, like pay (or repay, etc), is an absolutely reasonable requirement for potential employer and society generally to impose on anyone that has admittedly declared they have failed and used the law to be given a "fresh start", and have others take the loss for their inability.

Answer 4

There are disadvantages and advantages in filing for bankruptcy that should all be considered before making such a major decision. Some other disadvantages include: Losing credit cards, Losing non-essential possessions, Inability to obtain a mortgage for some time, Embarrassment. Lastly, you have to consider the fact that not all debt is dischargeable and bearing that in mind you need to look at your debt and what can and cannot be discharged.

Answer 5

Filing for bankruptcy will destroy the credit you have built up for years and will cause the interest on any outstanding or future loans to skyrocket. Furthermore, it will be a long time before any bank or agency will give you a loan due the your risk for defaulting.

Answer 6

In the United States filing for bankruptcy is often a viable way to dismiss current debts and start "fresh". The downside to this is the bankruptcy remains on a person's credit file for 7 to 10 years. This will disqualify the individual from getting a credit card or any type of loan.