Why you should avoid going bankrupt?
Advertising Disclosure
Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from many credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.
Credit Card Applications » Research » Guides » Building Credit History » Why you should avoid going bankrupt?

Why you should avoid going bankrupt?

Updated: December 26, 2012

Add to Favorites:

To certain people that are undergoing bad financial crisis, declaring bankruptcy might seem very tempting. However, you should know that there are a lot of problems that are associated with doing so, which would effectively make it quite lucrative to remain in a difficult position, rather than give up and seek the help of the government. Consider all the repercussions of declaring bankruptcy, and you can then decide whether or not this is something that you still want to be a part of.

The first big blow is that the moment you declare bankruptcy, your credit history will show this declaration for a period of up to 10 years! Imagine having such a devastating declaration on your credit history for that long. You will find it hard to even get a car loan, let alone funding for your home or children`s education. Thus, unless you have no other way out, this is definitely not worth it, as pretty much all banks are going to shun you from their doors and prefer not to deal with you.

Once you have declared bankruptcy, you will also carry that on in your record, which makes employability quite challenging. Hence, if you are bankrupt, finding a job can also be quite challenging. Most companies prefer to not deal with individuals that have filed for bankruptcy. Although this is not some stated rule, it is a widely followed one that is just not written on paper. Thus, if you are sure that you will be able to hold onto a job, you can go ahead and show bankruptcy. In other cases, it might be wise to look at other options for now.

Once you have filed for bankruptcy, your assets might all be seized and liquidated in order to pay for some of the debts. You are virtually asking the government to bail you out of your financial misery. Hence, you should be ready to lead a simple life and start from scratch, with a bad record. Is this something that you are okay with? If not, you might want to start slogging right away and fixing your finances before you can ask the government for help. Not only is this the recommended way to do things, but it also sets a great example for your kids to follow.

Add to Favorites:
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.

Related Research:

How to Get Free Wi-Fi in the Air

By Herbert Moore, Posted: September 28, 2016

Sometimes in-flight Wi-Fi is the bare necessity when you travel abroad or within the country. However not all airlines offer free in-flight Wi-Fi. There is only a couple of airlines that will allow you to use Wi-Fi ... Continue reading

Amazon Credit Cards Review

By Allison Martin, Posted: May 30, 2016

When Amazon.com was launched 20 years ago, few could have envisioned how far the company would come. What was once an online specialty bookstore is now an Internet juggernaut that sells nearly anything and has made major inroads into ... Continue reading

How Much Do Shell Cards Really Save on Gas?

By Allison Martin, Posted: April 20, 2016

There is an endless amount of gas cards on the market, and practically every major gas station, including Shell, has options to choose from. In fact, Shell offers two options for gas cards for consumers. Continue reading