What Are The Long Term Consequences Of Bankruptcy?
Bankruptcy is an issue that affected over a million Americans last year. Research has shown that there are a variety of reasons as to why people file for bankruptcy. Issues such as medical bills, job loss, excessive debt and student loans, if left untreated, can result in bankruptcy. If bankruptcy is imminent, then it is always advisable to talk to a credit counselor or an attorney to find out what sort of resolutions may be available.
There are many long term consequences that individuals face if they are bankrupt. If a person decides to file for bankruptcy protection, they should consider all of these effects before they actually go to court and file the petition for bankruptcy.
One of the biggest effects that an individual that files for bankruptcy will notice is that the insurance companies will not want to do business with them due to a lack of confidence.
If the insurance companies do decide to do business, then the rates for the insurance will increase significantly. Due to this increase in the price of insurance premiums, many people find it difficult to pay the rate and as a result, they simply decide to cancel the insurance altogether.
Another common long term consequence of bankruptcy is that banks and other lenders will be reluctant to provide the individual with credit because of their prior adverse credit history. Of course, a bank may decide to offer credit to an individual with a savings account; however, getting loans and credit cards issued will prove to be a more difficult task.
These are the main long term consequences of bankruptcy that a person will face. A person should explore all the options available to them to repay any outstanding debt and get their finances back on track before filing for bankruptcy with the court.
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