How Bankruptcy can Negatively Affect your Life
Have you been contemplating bankruptcy lately? While there are pros and cons to bankruptcy you need to be aware of all aspects of what it can do to your credit and your life. Talking to the Bankruptcy Attorneys at Robinson, Seiler & Anderson in Provo can help you in making the right decision. We have gathered some possible results of bankruptcy that could negatively affect your life.
As most people know, when you file for bankruptcy your credit score is negatively affected. Credit reporting agencies may including a Chapter 7 bankruptcy on your credit report for 10 years after the bankruptcy discharge. Chapter 13 bankruptcy information, along with other negative reporting, is usually removed after seven years. While you may be able to get your credit score back up to a reasonable number the bankruptcy information will stay on your credit reports.
While it is illegal to ask about your credit in a job interview, your future employer might run a credit check on their potential employees, especially for positions that require handling finances or client funds. You will be forewarned the prospective employer is checking your credit history, however, as they cannot do so without a signed release from you.
If you plan on buying a house within the next few years you will want to know about the negative affects a bankruptcy can have on your mortgage. A bad credit score can even effect your ability to get into a new rental. Securing a lease before you file for bankruptcy can help ensure you have a safe place to live, provided your credit rating has not already gotten so bad that landlords will turn you down even without the bankruptcy.
With a bankruptcy you should expect to have all of your credit cards removed from your possession. To help you in rebuilding your credit after a bankruptcy you can receive a credit card with a higher interest rate. A secured credit card may be the best option initially. After a year or two of making timely payments, you might be able to obtain a card with better terms to help work your way toward a positive credit rating.