What are the consequences of going bankrupt ?
I can’t believe those three answers!!! The consequences of going bankrupt is – Relief from your Debts! The BK stays your record for 7 years, sometimes up to ten years. The idea of going BK is to get a fresh start, and hopefully, be careful not to get over your head in debt again! You can have a bank Account, I did! Now is the time to rebuild your credit. If someone offers you a small credit line of $200, take it, but make sure you pay the balance every month. In time, the credit line will increase, but don’t get carried away with this, and start collecting more cards. The cost through a Legal Aid Society of $300 is about right, they do the paperwork and send it to the Court, you have to appear by yourself, takes just a few minutes, and you are home free! Actually, there is no shame in going bankrupt, just be careful how you conduct your life in the future!
Bankruptcy will always be a matter of public record. Some employers make financial checks and this may show up. You may have difficulty getting a mortgage or car loan and if you do you will likely pay higher interest rates. Your credit record will show you are bankrupt for six years afterwards. You will not be allowed a current bank account for the 12 months you are a bankrupt. I think it’s about £300 in Court fees, waived in certain circumstances. You’ll pay what you can afford for 12 months and then you are free from your debts and debtors. In some circumstances the receiver can make it 36 months.
