How Long Does Bankruptcy Last – Some Thoughts

Apr 4th, 2014 | By | Category: Debt

If you have stopped answering the phone because you’re afraid it’s a bill collector, you may rest in fiscal trouble. This usually means you’ve got a problem with debt and you might need to reach a solution at some point. The collectors won’t stop calling and you’ll have to endure the stress that a mountain of debt can cause. The only respond to your debt problems may be declaring bankruptcy.

Bankruptcy can stop the bill collectors from calling and help you create a plan to manage your debt. It can eliminate part of the money that you owe or make the level of debt you have something I think you can deal with. While bankruptcy is a way for some people to come out from under their debt, it isn’t without consequences. It will affect your capacity to use credit in the future and it will impact your credit score. The good news is that it doesn’t last forever. You can get credit after bankruptcy. The only thing you’ve got to do is know how to obtain the credit and ways to rebuild your credit report.

News About How Long Does Bankruptcy Last:

Eventually, you’ll be able to obtain credit even if you got a bankruptcy on your credit report. There are many lenders who specialize in helping people who’ve declared bankruptcy to get credit. You will find lenders that offer mortgages and car loans. You can also determine the best credit card after bankruptcy. You may have to pay extra fees and higher interest rates to obtain this type of credit. However, those costs will drop as your credit improves. The key is to learn from past mistakes. If you do get new credit after bankruptcy, use it responsibly. Have a plan to pay off what you owe and stick to that plan. When you do this, you’ll rebuild your credit and you’ll get of the advantages that go with having good credit.

Why do I say that? Because declaring bankruptcy is going to haunt you for a long time, like about 7 to 10 years. This will be a huge red flag on your credit report from all three of the most important credit reporting bureaus for this sum of time, and future lenders will see that and either decline your loan or credit request, or charge you an astronomical interest rate with your approval, where none of those two possibilities are attractive.

Sbarro LLC, the pizza restaurant chain, on Monday filed for bankruptcy protection for the second time in less than three years, after struggling with too much debt and lower customer traffic in the malls that house many of its restaurants. Sbarro and more than 30 affiliates filed for Chapter 11 protection from creditors with the U.S. Bankruptcy Court in Manhattan. The Melville, New York-based company has between $100 million and $500 million in both assets and liabilities, according to court papers. …

Some people will look at bankruptcy as the end. It is the end of the telephone calls and the end of the stress of overwhelming debt. There are other people who’ll look at bankruptcy as a new beginning. It is a time to move forward from the errors of the past and start afresh. It is a time to do things the right way with credit rather than the wrong way. If you look at bankruptcy as a start to something new, you can always get all of the things that you want. There are plenty of people who’ll be ready to assist you. It will take a little work and effort. However, it can happen and it doesn’t take as long as you may think.


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