What is the downside of bankruptcy? How will it affect my credit?
A bankruptcy will remain a black mark on your credit for 10 years while “no pays” and “slow pays” only stay on your record for seven years. It will definitely narrow your credit opportunities. You may not be able to qualify for any credit for a while. When you finally are able to qualify, you may have to start with loans with high interest rates, especially for car loans. Bankruptcy should never be done lightly or if you have any reasonable alternative. However, if your credit is already bad, it may be possible to rebuild your credit faster after a bankruptcy than to try to save it through an extended payment plan.
