What are the consequences of filing for bankruptcy?
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 dire
Depending on a debtor’s financial situation and reasons for filing, the consequences of filing for bankruptcy protection may outweigh the benefits. Those considering bankruptcy should be aware of the following: a. Filing for bankruptcy protection is not free. b. Not all debts are dischargeable. Example: Secured creditors retain some rights which may permit them to seize property, even after a discharge is granted. Spousal and child support obligations and most tax debts are not dischargeable. c. Within 15 days of the filing of a bankruptcy petition, schedules of the debtor’s assets and liabilities must be filed. Failure to timely file the appropriate schedules will result in dismissal of the bankruptcy. d. If a case is not dismissed and a discharge is entered by the court, the debtor is prohibited from being granted another discharge in chapters 7 and 11 within six years. e. Fraudulent information or acts by the debtor are grounds for denial of a discharge and may be punishable as a cr
