There are many common misconceptions and false impressions that the public maintains about filing for bankruptcy and the negative consequences that will occur to one’s credit after bankruptcy. It is true that there will be evidence of the situation on an individual’s credit report after bankruptcy. The credit report will display a negative result of filing for bankruptcy, and this will remain on an individual’s credit report after bankruptcy has been filed for approximately ten years.
This means that for ten years individuals may experience the detrimental effects of filing for bankruptcy. They may find it extremely difficult to receive a loan for any purpose. Therefore, they may not be able to lease a car or purchase a home for a long time. Even renting an apartment may present many problems because landlords and leasers may feel that if they lease an apartment to an individual with a low credit score the tenant may have difficulty paying the rent.
Poor credit after bankruptcy can also effect an individual’s ability to purchase a cell phone contract. In any situation in which an individual will be required to pay a creditor or a lender money for an extended period of time, the lender will review the individual’s credit report. If the individual has a deficient credit report after bankruptcy, it may prevent them from purchasing a wide variety of things.
Bad credit after bankruptcy may also be detrimental to an individual’s ability to obtain a job. Many employers will review an applicant’s credit report to ensure that they are not experiencing extreme financial hardships that may put them at high risk of abusing their position or their power. This is especially true if the applicant will have access to a company credit card while they are employed at a company or an organization.
The employer will want to be sure that their employees can be trusted with access to the company finances. Therefore, an individual who has received a bad credit report after bankruptcy may not be considered for various types of jobs. Despite these potentially adverse and negative consequences of filing for bankruptcy, bankruptcy may be extremely beneficial for certain individuals and is not always as harmful as many people believe it is.
To restate, it is true that an individual will have bad credit after bankruptcy. Despite these potentially adverse and negative consequences of filing for bankruptcy, bankruptcy may be extremely beneficial for certain individuals and is not always as harmful as many people believe it is.
Furthermore, it does not mean it will be impossible for an individual who has filed for bankruptcy to ever receive credit again. It may be difficult for an individual to obtain loans for very expensive items, such as a car or a house. Someone who has filed for bankruptcy will be able to receive a loan for these purposes, but they will be required to pay a much higher interest rate.