For many people, it’s no big secret that declaring personal bankruptcy is not necessarily good news, that it definitely is not easy and that it comes with consequences. So as well as considering whether you have alternatives to declaring bankruptcy before you decide to do so, you also need to familiarize yourself with the potential harmful consequences and make sure you know how you will deal with them.

First of all, your financial reputation will be tarnished. Your credit record will carry information ascertaining to your declaring bankruptcy for around ten years. This is going to make it very, very difficult to obtain any kind of finance and in situations you find you are able to get credit, you will find yourself on the receiving end of very high interest rates. You can rebuild good credit, however.

You may also find that your family members and close friends have little sympathy. Many people, particularly those of an older generation, a generation before hire purchase and when everyone only bought what they had the cash for, struggle to understand credit, excessive finance and thus bankruptcy. You may also feel embarrassed about declaring personal bankruptcy and feel that relationships are strained with those who feel let down by this. (more…)

Declaring bankruptcy can be a huge weight lifted off of your shoulders – but you must be extremely careful not to fall into debt again in the months and years after you file for Chapter 7 bankruptcy. One of the best moves you can make after declaring bankruptcy is to make sure that you have a steady and predictable income. The best way to achieve that is through getting a job with a regular paycheck.

But is it more difficult to get a job after you have declared bankruptcy? Not really. Although it is becoming more and more common for potential employers to do credit checks on potential employees, your credit score would still have been quite low if you did not declare bankruptcy. Also, there are a few simple steps you can take in order to minimize the effect that your bankruptcy will have on possible employers. (more…)

Contrary to popular belief, despite changes made in 2005, bankruptcy is still a possibility for the vast majority of people for whom is was prior to the congressional changes of that year. But as with any financial decision, it is one that should be carefully thought out. And you cannot possibly make a decision before educating yourself on the pros and cons of declaring bankruptcy.

And when it comes to the pros and cons of declaring bankruptcy, the obvious place to start is with the major benefit and reason that people opt for it in the first place. The possibility of having your debts completely wiped out, being gifted a fresh financial start and the opportunity to essentially start again in financial terms. This can be such a huge relief to those who have been dogged with unmanageable bills for months and months and who have been terribly frightened for their future. However, bankruptcy will not eradicate all bills. While it will deal with credit card bills and medical bills, as well as other unsecured finance, it will not wipe out, generally speaking, student loans, criminal fines, alimony or child support. (more…)