Why Is Personal Bankruptcy Harmful?
Bankruptcy can have negative effects both financially and psychologically. While a bankruptcy will stay on your credit record for 7-10 years, the process and emotions of going through bankruptcy will be with you for the rest of your life. You may have your wages garnished and your assets (including personal items) repossessed. Many people admit that bankruptcy turns into a major negative life-changing event. Unfortunately, while the bankruptcy will leave your official credit record after a decade, you’ll still need to report this fact if you are asked about it on a loan or employment application. While this may say nothing about your ability to perform a job well, potential employers may be reluctant to hire someone who has gone through bankruptcy. In addition, many employers require a credit check, and your bankruptcy can reduce your credit score by up to 200 points. Another startling fact that isn’t discussed in bankruptcy advertisements is that not all debts can be dismissed through
