Bankruptcy may be your quickest way of getting relief from your unbearable debt, but it is also the most damaging action to your credit ratings. Let us review the consequences of filling for a bankruptcy before your make up you decision to go for it.
1. Hard to Obtain Credit
Bankruptcy restrictions apply from the moment the bankruptcy order is made and it is a criminal offence to break them. These restrictions will make it difficult, if not impossible, to obtain credit. If you wish to buy a house in the future, there will be a two-year waiting period after the Chapter 7 case is discharged before you will be deemed eligible for a home loan. When a Chapter 13 bankruptcy case is involved, the waiting period is twenty-four months after the debts are paid off in full. During that two-year period, you will need to have been employed steadily, have no negative entries in your credit file, and kept debt under control.
2. Negative Impacts If You Are In Business
You will not be able to be a director of a company or hold certain offices. You will also have to inform any people you do business with the name in which you were made bankrupt; this may has negative impact on your company’s reputation and may discourage your potential customers to do business with you.
