What are the effects of Bankruptcy?
The Effects of Bankruptcy
While effects of bankruptcy can be numerous, it’s not difficult to bounce back from them.
Some of the most common include the following:
Temporarily weakened credit:
A bankruptcy filing is seen as a negative action on your credit report and the bankruptcy filing itself will appear on your credit report for seven to 10 years. However, the overall effect your bankruptcy has on your credit diminishes as time passes and your more recent actions begin to fill up your credit report.
Difficulties getting loans:
Due to the effect a bankruptcy filing has on a person’s credit, qualifying for a loan tends to be very difficult in the months directly following bankruptcy.
Difficulties getting work:
These days, many employers conduct credit checks in addition to criminal background checks for potential employees. Unfortunately, it seems that some employers see a bankruptcy filing as a reason not to hire someone.
Despite these negative effects of filing for bankruptcy, our firm can help you get on the right track to making positive, financially sound decisions to avoid ever filing for bankruptcy again!