1. Bankruptcy doesn’t remove all debts
Debts such as back taxes less than three years old, student loans, alimony, child support and debts acquired through fraud are typically not erasable. Even though you declare bankruptcy, don’t assume you’ll all of the sudden find yourself debt free.
2. Bankruptcy might not be cheap
First, there are the obvious expenses of filing costs and attorney fees. Also, a record of your bankruptcy will stay on your credit report for seven to ten years. This could make it hard to attain any new loans and, if you are able to attain new credit, the interest rates and repayment terms will probably not be go in your favor.
3. Bankruptcy influences more than your credit
* Emotional stress
* Less ability to rent an apartment or qualify for affordable insurance
* Potentially affect your ability to get a job or promotions
4. Bankruptcy doesn’t change your bad financial habits
Bankruptcy may not solve your long-term financial situation. Most likely, your financial difficulties came about partly because of the way you mismanaged your finances. This is usually because of embedded|ingrained habits that have been a part of your psychology for years. Without a change in lifestyle and spending habits, you will probably find yourself right back where you started.
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