Implications of filing for bankruptcy

ADVERTISING DISCLOSURE

ADVERTISING DISCLOSURE:
Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from most 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 » Implications of filing for bankruptcy

Implications of filing for bankruptcy


Updated: December 26, 2012

The content is accurate at the time of publication and is subject to change.

In the current economic climate, one can never say when a company might have to close down or file for bankruptcy. Things are just not the same anymore; there is not much money moving around for companies to be able to stay afloat in difficult times. The talk of the town these days is about bankruptcies and foreclosures.

Filing for bankruptcy might seem the easy way out in most cases but you do need to realize that it should be the last option that you go for under any situation. The implications of filing for a bankruptcy are dire and you really should not put yourself in such a position unless you really have no other option left with you. Unless you realize this as soon as possible, it will become very difficult for you to go about your business without always having to beg another person for help. Try to go for all other options before you think of taking up such a drastic step. Your best bet would be to consult with some financial advisors before taking a decision.

The problem with filing for bankruptcy is that it will stay on your credit record for eight whole years before it disappears. And if any bank finds out that you have a bankruptcy in your record, you will automatically be denied any sort of relationship with them. You will be denied loans, credit accounts and even bank accounts in some cases. Banks hate people with a history of bankruptcy because it hurts them directly and the quantum of damages done can be immense depending on the size of the company that went into bankruptcy.

Another issue of having a bankruptcy in your credit record is that your image will fall in the eyes of anyone who has access to the record. And this could include your future employers, venture capitalists or any business partners. And this can be really hurtful particularly for people who are into entrepreneurship as a means for survival. If you are not able to get finding for any of your ventures, you really cannot do much with any of your ideas. This can be a really frustrating thing for people who are passionate about what they are doing. Hence it is important that you try and salvage your company without having to file for bankruptcy. Bankruptcy is a means for your personal and immediate survival but it cannot ensure that you will live a comfortable and care free life in your later years.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.
Add to Favorites:
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.

Related Research:

Top 5 Cards for Travel from Our Partners: Summer 2018 – Expert’s Choice

Top 5 Cards for Travel from Our Partners: Summer 2018 – Expert’s Choice

Posted: February 12, 2018

The sun shines more and more each day, flowers are in bloom and you already feel how hot it is getting - summer is here. Summer holidays are almost here, and you are in need of dire preparation. You can lift in spirits and let CreditLand ... Continue reading
Cash Back or Travel Rewards? Here’s How to Decide On The Right Card

Cash Back or Travel Rewards? Here’s How to Decide On The Right Card

Posted: February 10, 2018

If you're trying to find the perfect rewards credit card, you might feel like you're drowning in options. There are just so many out there, and many of them look similar. This can make it tough to decide on a card. One thing people often ... Continue reading
Price Protection: Credit Cards That Will Refund a Price Drop

Price Protection: Credit Cards That Will Refund a Price Drop

Posted: February 8, 2018

Those who often find themselves buying stuff and then discovering that they could pay less for the same item they've just bought, will appreciate this credit card benefit – price protection. This is the least known and the most neglected ... Continue reading
You've successfully subscribed!

Please specify the following:All these fields are optional

Your Credit History
Themes you are interested in:

By providing this information you help us make our news letters more useful and informative. Thank you!