Before You Decide to Suffer Personal Bankruptcy, Ensure You Reflect on These Facts
- Posted by admin on December 29th, 2008 filed in Finance
1. Bankruptcy doesn’t remove all debts
Debts such as back taxes under three years old, student loans, alimony, child support and debts acquired through fraud are usually not dischargeable. Even though you declare bankruptcy, don’t assume you’ll suddenly find yourself debt free.
2. Bankruptcy might not be cheap
First, there are the obvious expenses of filing costs and attorney fees. Also, a record of your bankruptcy will stay on your credit report for seven to ten years. This could make it difficult to obtain any new loans and, if you are able to obtain new credit, the interest rates and repayment plans will probably not be favorable for you.
3. Bankruptcy affects more than your credit
* Emotional stress
* Less ability to rent an apartment or qualify for affordable insurance
* Potentially influence your ability to get a job or promotions
4. Bankruptcy doesn’t change your suboptimal financial habits
Bankruptcy may not resolve your long-term financial situation. Most likely, your financial problems came about in part because of the way you mismanaged your money. This is usually because of embedded|ingrained habits that have been a part of your psychology for years. Without a change in lifestyle and spending habits, you will probably find yourself right back where you started.
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