What are the negative consequences of filing bankruptcy?

A bankruptcy filing is noted on your credit report for ten (10) years. During those ten (10) years, if you were to attempt to obtain credit or get a loan, you could be, but not necessarily would be turned down solely because of the fact that you filed bankruptcy even if by that point in time your financial situation has improved dramatically and you otherwise should qualify for the loan. However, many times, people find that they can get loans, even car loans and mortgages, soon after a bankruptcy.

Ironically, people who have filed bankruptcy recently are often solicited by credit card issuers to try to give them a new credit card. Usually, the interest rates for credit extended soon after a bankruptcy are not as favorable as if you had never filed bankruptcy and otherwise had a good credit score.

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