Personal Bankruptcy
Consequences of Personal Bankruptcy
There are many measures you can take before concluding that personal bankruptcy is the only way out of your financial straits. Personal bankruptcy is quite definitely a last resort because the consequences are too severe and long-lasting. The bankruptcy itself remains on your credit report for 10 years. The debts that resulted in the bankruptcy remain for seven years.
A personal bankruptcy signals to a potential creditor, rightly or wrongly, that you would not take preventive steps to stop your downward financial slide. As an extremely negative mark on your credit history, it will be extraordinarily difficult to overcome when it comes to getting new credit. A personal bankruptcy guarantees you will pay higher interest rates and extra fees and charges for credit, if credit is offered at all.
Prevent Bankruptcy
All the more important that you find out the many directions you can explore before you get to the point of bankruptcy. The advice of financial consultants is discussed throughout this Credit Repair Hub: contact creditors for help, get rid of credit cards, put yourself on a budget. Make an appointment with the Consumer Credit Counseling Service (CCCS) to see if they can arrange better payment terms for you.
Obtain secured, pre-paid, or stored value credit cards so you have an automatic check on charges you can make. Get a reliable person with good credit to co-sign for any credit or loans you must have. Make payments in full and on time. In addition to building good credit for yourself, you also maintain your friend's good credit.
