What are the downsides to declaring bankruptcy?

Answer by  Rose (6804)

If you file bankruptcy it will remain on your public record for seven to ten years, as a result it will be difficult to get car and or home loans. While bankruptcy will help to reduce your debt it will hinder you in obtaining any future credit, including credit cards.

Answer by  jennifercrowe84 (202)

can not get anything new on credit and you can not get new credit cards until it is over. If you miss to many payments you will lose everything that you put on it when you filed for bankruptcy. Payments comes right out of your paycheck and if you do not work enough it will hurt you.

Answer by  Roland27 (16334)

It is nearly impossible to build your credit back up for a while. Once you declare bankruptcy your slate is wiped clean which is good but when you go to get home loans, car loans, credit cards or any other type of credit you are going to need a cosigner. It will remain this way until you build it up.

Answer by  Anita27 (656)

Declaring bankruptcy will affect your credit for the rest of your life. It will make applying for credit in the future very difficult.