Bankruptcy is not an answer for those who have an alternative way out of the financial hardship that they are going through. This economy has made it very difficult for most people to make ends meet. Many have lost their jobs and some have even lost their homes. It has been a long, ongoing nightmare that seems to get worse every time the news is on. More and more people are on the streets. More and more people are losing their jobs and now, the unemployment rate is sky high. If it looks like it may be time to check out this option, you will need to know how bankruptcy affects the rest of your life.

Filing for bankruptcy protection is something many people are doing these days. Not because they want to, but because they simply see no way out. The economy has taken its toll on everyone and so many people have lost their jobs and their homes. If they can’t pay their bills, no matter how many threats they receive, they still can’t pay their bills.

Filing for chapter seven, eleven or thirteen provide different levels of protection for the consumer. And it allows the consumer to hold on to certain assets without having to sell them or lose them, like the family home or car.

Bankruptcy does follow the consumer for the next ten years on their credit record. It can prevent approval for a personal loan, credit cards or even an auto loan. It can even prevent obtaining secured loans like for windows and air conditioners for the home, even though a lien will be placed on the house. Merchants look at bankruptcies very seriously and if they choose, can make it difficult on the consumer.

If a consumer has a bankruptcy on their credit, they can also be turned down for housing. In other words, they may not be able to rent an apartment or house, as they do a credit check as part of the tenant application.

This has also affected people with obtaining a job that they otherwise qualify for. Credit checks are often done on potential employees, and as part of the reference package, their credit is checked. If a bankruptcy appears on their credit, they could be turned down for the job.

Having a current bankruptcy can also prevent a consumer from buying a home. This can easily stand in the way of clearing them for a house loan. After a few years, it is possible to obtain a loan for a home, as some banks do not wait the entire ten years before they will consider it.

Bankruptcy can hurt is some ways, but people who file often get back on their feet in three or four years. Banks start sending pre approved cards, and before long, the consumer is rebuilding their credit. It is difficult, and no one likes going through it. But recovery does not always take as long as most people think. If this is the route that needs to be taken, talk to your spouse and make sure that you both understand how bankruptcy affects the rest of your life.

About the author, Bankruptcy is an extremely complex process,if you need help through the process, hire a Toronto bankruptcy trustee

Author Bio: Bankruptcy is an extremely complex process,if you need help through the process, hire a Toronto bankruptcy trustee

Category: Finances
Keywords: bankruptcy, toronto, trustees,money, credit, debt