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Bankruptcy should be the last step
Many legal firms will promote bankruptcy as the answer to your credit
problems. That is a significant decision that will affect your life for up to 10
years. Don't be fooled by those who offer bankruptcy as a quick fix. Filing for
bankruptcy should be your last resort.
Types of bankruptcy
If you declare bankruptcy
- It may be difficult to rent an apartment or qualify for a home loan for
7-10 years.
- It could affect your ability to find a job, since many employers are now
using credit reports as part of their screening process.
- It could affect your ability to sign up for utilities and other basic
services, or it could mean you'll be asked for a hefty deposit.
- It can affect your auto and homeowner's insurance rates.
Common misconceptions about bankruptcy
- You're still going to have to learn to live
on what you earn.
- You can get credit after bankruptcy. Maybe, but it will be very expensive.
Even if you qualify, most loans may carry interest rates as much as twice as
high as if you have good credit.
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