Tip! If you’re recently recovering from bankruptcy, the only thing that matters is if you can get approved at an interest rate you can afford through a lender that reports to all three national credit reporting agencies. So you should only consider lenders that are bankruptcy friendly.

You are laden with debt and experience grave difficulties in paying up. You work from dawn till dusk and hold two jobs, but your income is still inadequate to pay off your outstanding credit card balances. You feel like you are left with no choice but to declare bankrupt and get your debt wiped out. At least you can start on a clean slate and be more careful with your spending next time.

Before you file for Chapter 7 or Chapter 13, it pays to evaluate the consequences of declaring bankrupt. Although it may seem like the best option you have at the moment, it pays to consider the future consequences of going bankrupt.

For one thing, being bankrupt will leave mark on your credit history. If you had filed under Chapter 13, your bankruptcy record will usually remain for 7 years, while Chapter 7 will result in a bankruptcy record for between 7 and 10 years. This means that you will face much restriction on your finances at least for the next 7 years.

Read more at How Bankruptcy Can Affect Your Credit History

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