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What Results from Bankruptcy?
Fortunately, there are no longer debtors' prisons; but neglecting your bills, getting in debt over your head, or filing bankruptcy may hurt your credit history for many years. Federal law protects your right to file for bankruptcy. For example, you cannot be fired from your job solely because you filed for bankruptcy. However, creditors may deny you credit in the future. Remember, most unfavorable information in your credit file stays there for seven years and a bankruptcy stays for ten years. So long as your credit record has unfavorable information, you may have credit problems. This means that you may have trouble renting an apartment, getting a loan to buy a car, or a mortgage for a house.
Nonetheless, declaring bankruptcy is sometimes your only reasonable choice. People who file bankruptcies are usually doing so because of financial difficulties. These may have resulted from the loss of a job or from a serious illness or accident. Whatever the reason, you have a legal right to file for bankruptcy. A lawyer or other professional who specializes in bankruptcy can help you decide what is best for you.
Family Legal Guide
Copyright © 2000, 2002 American Bar Association
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