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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.