April 2nd, 2008

One bad thing about a chapter 13

Posted in Bankruptcy, Credit, Debt, Uncategorized

Below is listed just one of the very negative aspects of filing for bankruptcy of any form. 

1. Bankruptcy has an extremely negative impact on your credit and becomes a lifetime public record!

A bankruptcy proceeding is one of the most extreme bad remarks that you could have put on your credit report. Thus making any more credit you attempt to get extremely hard, and if you do obtain credit it usually comes accompanied with a seriously elevated interest rate. Additionally, it will stay on your credit report for between 7-10 years. Even when it gets removed from your credit report it remains a public record for the duration of your existence. So whenever you try for new loans at any point in the future, if asked the question whether you have ever gone through a bankruptcy proceeding to avoid breaking the law you must answer yes.

 If possible it would be best to avoid bankruptcy, perhaps look to see if you qualify for a debt settlement program.