The Negative Effects of Bankruptcy
When someone is considering filing for bankruptcy, chances are that they aren’t thinking of all the repercussions that they are going to have after it’s over. Here are negative affects of filing for bankruptcy.
Feelings of embarrassment and defeat, since everyone knows that you have filed for bankruptcy in California.
No say in how much you will have to repay to your creditors, since the decision isn’t in your hands any more.
Loss of assets or treasured items, such as your house or car, or even your business if you are business owner.
Payments to repay creditors can be garnished from wages for as many as five years.
Consumer debtors have to attend credit counseling within the first six months after they file for bankruptcy.
Debtors have to finish an education in personal financial management before they are able to get a discharge.
If it’s a chapter 13 bankruptcy, it will be your personal credit report for 7 years, if it’s a chapter 7 it stays on for 10 years.
When someone is considering filing for bankruptcy, they need to think about the negative affects of what they are doing and ask themselves if there isn’t a better way to help themselves out of a financial mess. Chances are that there is, they just have to do some research and ask for some advice from other people. Credit counseling is a good place to start. Bankruptcy is not the only option that they have to go on.
It pays to get multiple opinions before you end up filing. Bankruptcy stays on your record for 10 years, so you need to go into this knowing everything in advance.