What happens when you File Bankruptcy?
June 23rd, 2008
One of the main purposes of bankruptcy legislation is to afford the opportunity to a person, who is hopelessly burdened with debt, to free him or herself of the debt and start fresh - “almost like having a new lease on life.” By law, all actions against a debtor must cease once you file bankruptcy.Creditors can’t initiate or continue any lawsuits, wage garnishees, or even telephone calls demanding payments. Your wife or husband will not be affected if you file bankruptcy, if they are not responsible (did not sign an agreement or contract) for any of your debt.
A number of banks now also offer “secured” credit cards where a debtor puts up a certain amount of money so you can still have a credit card. Two years after a bankruptcy discharge, debtors are eligible for mortgage loans on terms as good as those of others, with the same financial profile, who have not filed bankruptcy.
However the fact you file bankruptcy stays on your credit report for 10 years. It becomes less significant the further in the past the bankruptcy is. The truth is, that you are probably a better credit risk after bankruptcy than before.
There’s so much to think about when you file bankruptcy; we’ve already found the best links below to help you get the right information fast. Simply click on one now.
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