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Bankruptcy and Credit

Bankruptcy Laws

Bankruptcy cases are handled by federal judicial district courts and not local state courts. The option to file bankruptcy was designed to protect people (or businesses) who can no longer afford to pay creditors; it allows a fresh start, though there are some lasting consequences.

Bankruptcy and Your Credit Report

Bankruptcy can be a terrifying thought, and a very stressful process to go through. When you are considering bankruptcy, you may feel as though you have somehow failed yourself, and your family, if you have one. It is not, however, the end of your financial career. Some lenders will still consider lending to you, at a very high interest rate, after a bankruptcy filing. In the beginning, however, you will be denied new accounts almost anywhere you seek a credit line.