If you become bankrupt, it can affect your credit rating because it will appear on your credit report for up to ten years. Everyone including the lenders will see you as a bad risk. If you go bankrupt, it becomes difficult for you to borrow loans or getting a credit card. Even if you manage to get a loan or credit card, the interest rates will be very high. There are some things that you can however do to still be able to live a positive life after bankruptcy.
Getting credit again
One of the things that you may be worried about after bankruptcy is whether you will be able to get any credit. It is possible. Banks have got special plans to deal with such people. You can get a secured credit card whereby you pay a certain credit deposit. If you use this card, it will help you to rebuild your bad credit history. If you pay your debts on time and properly, you can get regular credit within a short period of time like two years. No more harassment After bankruptcy, no creditor will be allowed to follow up on payments or anything from you. There will not be phone calls anymore and no one will take you to court or file a claim against you. This can at least give you some peace of mind and you can also concentrate on building your tarnished image both financially and personally.
How about my friends and family?
If you are worried about your bankruptcy status going public, you might be relieved to know that it is only a few people who will be aware of your bankruptcy filing. Whilst bankruptcy filing is recorded in a public report, it could only be the credit bureaus who have got access to this information. Some of your family and friends members may not even know about it. Does bankruptcy affect my spouse? Yes it does. If you are married in community property, it means either you or your spouse have got equal signing powers for a debt. In such a case, the debt will be a responsibility for both parties. If you are married in a non-community property marriage, then the bankruptcy will not affect your spouse. It is important however to seek advice about liability issues so that you will be able to know how best you can deal with your bankruptcy.