One of the first things many people think of when they consider filing bankruptcy is the negative implications it will mean for their credit rating. A bankruptcy can stay on your credit history for up to 10 years, making it a reasonable concern.
When a lender sees a bankruptcy on your report, they may not consider you a good loan risk. And if they do take a chance on you your interest will probably be a lot higher than you would have received before bankruptcy.
Some other factors could contribute to a low credit rating, such as late payments, liens, over the limit charges, foreclosures or suits brought about from non payments of loans. All of these items stay on your credit report for seven years and chances are you will lose your home or your car.
By the time you are considering bankruptcy, some of these negative marks are already on your credit report causing lenders to think twice about giving you a loan.
Adding More Debt
Getting another loan to help get caught up on your bills will only add more debt to your already stretched budget.
Bankruptcy may be the best answer to protect the assets and give you time to get your finances in order and get back on a healthy financial plan. The bankruptcy laws are there to protect you and give you a fresh start.
Worrying about your credit rating may be like closing the barn doors after the horse has already run away. Talk to a Cincinnati bankruptcy attorney near you to discuss your options.