Handling Your Bankruptcy Credit Report

A bankruptcy credit report is a document or a statement that announces that you are filing for bankruptcy

. This is a solution that several people and companies resort to when they are neck deep in debt that they are unable to repay. Filing for bankruptcy ensures that you are temporarily relieved of the pressure of repaying debt. A court will decide on the means of repayment, pending which creditors will be kept away from you. However, it does have several negative issues that will crop up. The main being a dent in your social standing and a huge black mark on your credit rating. A bankruptcy declaration remains on ones credit report for up to 7 years or more.

What this essentially means is that any bank or lending institution will hesitate to give you money. If they do, you will be liable for much higher rates of interest as well as annual fees. In the long term, this can be quite telling on your financial capabilities and standing. You will also find it extremely difficult to make important purchases like buying a home, a car or even renting a place to live.

Since bankruptcy goes down on your social report as well, finding employment can be tough, in case you are out of job. This is because ones financial records are scrutinized as part of a background check conducted on a potential employee. This is more so where the position may involve handling money.

This does not mean to say that there is nothing you can do about it. It will however take a very long time. You will therefore have to think hard before you actually declare bankruptcy. Consider selling off assets that you can let go of in order to clear your debt. Go in for debt consolidation where you can. This means you take a single large loan to clear all debts and then work diligently to clear this one big one off. Debt settlement is another option where you approach each of your creditors and settle full amounts minus a little which they are willing to let go for a greater deal.

Filing for bankruptcy should be the final option you resort to when all else is sure not to work. When doing so it is also essential that you seek the help of a qualified lawyer to help you through the proceedings.

by: Enrique Castillano

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