EagleEye Posted October 24, 2021 Share Posted October 24, 2021 I see alot of people suggesting that you file for bankruptcy and it sort of removes your debt. But there must be some downsides to this? Or can I file for bankruptcy and start rebuilding my life from there? 1 Quote Link to comment Share on other sites More sharing options...
Scarlett Posted October 24, 2021 Share Posted October 24, 2021 The downside is the hit you take to your credit that remains for 4 to 7 years depending on your debts. I know someone who is a family friend who has filed 3 times now and he is only 47. Some people use it as a crutch which I think should be changed. 2 Quote Link to comment Share on other sites More sharing options...
James Posted October 25, 2021 Share Posted October 25, 2021 It damages your credit for awhile and I think since it goes through the courts it should show up on public records (this is likely the largest downside). It should be a last resort effort and not something anyone considers as plan A. 1 Quote Link to comment Share on other sites More sharing options...
Emma Posted October 27, 2021 Share Posted October 27, 2021 I have heard of people being stuck without being able to apply for loans or credit for a full 7 years and others who were able to get a new credit card after just 2 years and start building their scores back up. I think it really depends. I had no idea it was made public though. Maybe that is why people are too ashamed to go through with it sometimes. 1 Quote Link to comment Share on other sites More sharing options...
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