Surviving Financial Crises

Bankruptcy

What are some of the negative consequences of filing for bankruptcy?

It is very difficult for people who have filed for bankruptcy to get mortgages to buy a house. You most likely will need a co-signer on the loan in order to do so for many years after the filing. You will also require a co-signer in order to obtain credit, and even credit cards. And credit card interest rates will be much higher than for people with good credit scores. If a potential employer runs a credit check, they may react negatively to a bankruptcy. You will also have to have a high interest rate secured credit card, which means a lien is placed on some asset for the amount of credit you wish to use. Apartment rental companies will oftentimes run credit checks and look at a bankruptcy as a significant risk when considering your application. So a bankruptcy can have some pretty negative consequences as well.



Watch out for bankruptcy attorneys who offer amazingly low fees or who send their assistants to meet with you instead of talking to you directly.

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