Say No To Declaring Bankruptcy

By Author: J.J. Yong
Total Articles: 962
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During global economy crisis, many people are drowned in credit card debt. In order to become debt free, they have decided to declare bankruptcy because in their opinion, by doing so, they will be able to get rid of their outstanding balances easily. To be frank, I don't think this is the best financial solution for a person to get his or her finances back to control. If a person files bankruptcy under Chapter 13, he or she is still required to clear the debt gradually through a monthly repayment plan fixed by the court. Getting rid of debt instantly seems to be not so possible through declaring bankruptcy. At the same time, there are many negative effects a person needs to face.

I would like to share with you some possible consequences. In many real scenarios, people who have declared bankruptcy fail to obtain financial assistance from the lenders. Their application will be rejected by the banks or other financial assistance whenever they want to obtain car loan, housing loan, personal loan, study loan, etc. In some circumstances, even if their applications are approved by some of the special lenders, they still have ...
... to pay extra high interest compared with other normal borrowers. Same thing happens when the applicants apply for new credit cards. Furthermore, if they purchase insurance plan, they will be required to pay higher premium too. Isn't it cruel? The lenders have to charge higher interest because they need to reduce their financial risk. The lenders know the background of the applicants through their credit report. The applicants can't hide or remove the negative items from their credit reports because the truth of declaring bankruptcy will be remained on the credit file for 10 years.

There are many companies who have different views on those bankruptcies. They usually don't recruit this group of people due to their "creditworthiness". Besides, getting promotion will be difficult too. It is indeed unfortunate and unfair if you are denied due to this reason.

Seriously speaking, do you think you are emotionally and psychologically ready to face your life after bankruptcy with these negative impacts? If you are not ready, never ever think about this financial option because there are many other alternatives in the market which you can apply in order to become debt free. You may consider debt settlement plan or debt consolidation loan. Both financial solutions will not have negative effect as bad as declaring bankruptcy.
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