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What are the downsides of bakruptcy?


EagleEye
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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. 

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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. 

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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.

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