What's next after you file a bankrupt?

I’m not sure you win anything.

You definitively lose more than you win. Declaring bankruptcy isn’t like it used to be. Used to be debt-slave to start all over again with blank papers. Now it’s debt-slave to living in poverty for the rest of your life.

Bankruptcy offers a chance for those who got in over their head to start over. In my case it was a business that failed for various reasons. We pretty much lost everything except for some cash (less than $10,000) and started over. We didn’t win anything other than the right to start over. The losers were the few people who didn’t get paid. Our credit was garbage for 3 or 4 years. No credit cards. No one would give a loan. But after those 3 years we had saved some money, bought a new car on credit with a big down payment and an outrageous interest rate. Then a few credit card offers came. And today, we have a very high credit score, little debt and a rosy outlook. The secret to bankruptcy is to learn from your mistakes and make sure they don’t happen again. That said, it doesn’t mean you can’t take risks again…just do a better job of calculating the odds of success. Good luck!

@Sueanne – Great advice!

Some employers are looking at personal credit histories to determine what kind of a person you are.

indeed vectorul, many employers now pull credit histories as a gauge of how you manage your personal affairs, thus as the thinking goes, giving them an idea about how you discharge responsibility in the workplace. Your credit will suffer and the impact of that can’t be understated. Any item you want to buy but can’t pay for all in one lump sum will require special financing with high interest rates, if you get financing at all. Try renting a car with a debit card, for instance.

Also, about a year ago Congress, with the assistance of the President, passed some tough new bankruptcy laws. Whereas you used to be able to qualify, now only in extreme cases of hardship will bankruptcy even be an option. If you’re drowning in credit card debt that’s no excuse anymore.

Not a rosy answer but bankruptcy is not to be taken lightly. Many good bankruptcy lawyers will give you at least a half hour free to look at the paperwork and tell you what your options are. If you or someone else need an opinion then look here: http://www.martindale.com.