What are the Consequences of filing Bankruptcy?
A. While Bankruptcy is a blemish on your credit profile, many times, depending upon a client’s particular facts and circumstances, the filing of a Bankruptcy may be the first, most important step toward rebuilding one’s finances. In the end, if an individual has incurred enough debt and does not have enough disposable income to direct toward credit card payments, many times there are two choices: continue to be a slave to your creditors or address the problem head on a take the steps necessary to rebuilding your financial future: manage your debt through the filing of a bankruptcy.
A debtor may not be fired from a job because of filing for bankruptcy. However, creditors may take a past bankruptcy into consideration when deciding whether to extend credit. Many creditors regard a person who has filed for bankruptcy to be a higher credit risk and may either refuse to extend credit or only extend credit on less favorable terms. Bankruptcy filings remain on a consumer’s credit report for seven to 10 years. It usually takes at least three years to reestablish your credit rating.
