What are the Consequences of Bankruptcy?
Bankruptcy is a legal process in which debts are erased, and it comes with some pretty big consequences. The biggest one is that bankruptcy will remain a part of your credit report for up to 10 years after you've filed. So even if you pay off the debts you had before, the bankruptcy will still show up and make it look like you have really bad credit.
In addition, a bankruptcy can make it difficult to get approved for other loans or credit cards. This means that even if you pay off your debts from before your bankruptcy and rebuild your credit score, you might find yourself struggling to get other loans in the future.
The main consequence of bankruptcy is that it wipes out your debt. So in the short term, you might be able to save some money by not having to make payments on your credit card, medical bills, or other loans. But here's the bad news: bankruptcy also has long-term effects that can haunt you for years to come. Many landlords, employers, and lenders will run a background check on you before they decide whether to hire you or rent to you—and if they see that you've filed for bankruptcy in the past seven years or so, they'll likely reject your application.
If you have any questions or need a Bankruptcy Lawyer, please call this law firm for a free consultation.
Ascent Law LLC
8833 S Redwood Road Suite C
West Jordan UT 84088
(801) 676-5506
