What else if affected, beside credit?

[WantToBeDebtFre]

For those of you that have already been through your bankruptcy,

What other parts of your life have been effected negatively besides your credit score? I've been wondering if my auto insurance will go up. Will 20 years from now I have to fill out an application for something and the bankruptcy question will be asked and I'll miss out on an opportunity of some kind.

I know bankruptcy stays on your credit for either 7 or 10 years but what are the other ramifications?

Thanks!

[no_it_all]

Well, since you will no longer have any credit, your lifestyle will change..sometimes drastically. No new cars or buying a house for awhile. Paying cash for things is actually pretty cool (after awhile).

You may find it hard to relocate, since many places will not rent to you.

The BK will drop from your records after about 10 years or so, and will NOT be factor in credit decisions WAY before that.

[BKOnce]

Humble, Self-sufficency, Self-control.

[WantToBeDebtFre]

Thanks for answering. I know I'm going to have to file. This will be the first month I'm not paying on my credit cards. I'm just really nervous on what's going to happen.

[BKTango]

Nowadays the effect on your credit is not quite as huge as it was in years past. You can easily buy a brand new car 1 day after your bankruptcy is discharged. the big question becomes should you. The same goes for a house, 1-2 years after discharge you can buy another home just like any other home buyer out there. Interest rates you are given, that's the biggest effect the bk will have on you, and that only lasts for awhile. You can easily obtain new credit after bankruptcy, but again, the question remains if you should. Or would want to.

You will have to learn to live on cash while your bankruptcy case is open, this also gives you the greatest opportunity to really look at your bidget and learn to live within your means. That way once you are on the road to recovery you will hopefully never end up back here again.

The bk will remain on your report for 10 yrs if a chapter 7, however it's effect will not be that great by that time. Time is your true friend in getting back to low interest rates.

Some home owners do discriminate against filers for renting, it's rare but does happen. Also if you have a job working in finance or a job with a security clearance, it can be effected.

Odds are you will come through your bk unscathed with a better knowledge on how to live life the way it should be for you, not how you think it should be. Your credit will recover shortly. Filing bankruptcy does not mean we are now sent to he gallows wearing a scarlet B. We are given a second chance to start fresh and clean. Use that chance wisely.

[CATCHMEIFYOUCAN]

Cash

Paying cash for things is actually pretty cool (after awhile).

I hear that, it is a relief to know I owe no one on any purchases I've made so far, new car stereo, xbox, gps system .. etc etc etc.

Catchmeifyoucan

[CATCHMEIFYOUCAN]

Creditors (like auto dealers) are eager to get you into a car just be weary of the higher interest rate(s) 25% and up ! ! ! Creditors know, now you have all this disposable income ! ! ! So be careful when you start rebuilding your credit. I had just bought a new car just before I filed. I had no car payment and my honda had gotten flooded so I had no choice. I bought a Hyundai with 9.9% interest through dealer financing. After my Bk I applied with Capital One, just to see what they had to offer, within a week I got loan papers up to $19,000 with 12% interest, all I had to do was sign on the dotted line - no joke. Of course I didn't go for it, but that is how easy it is!

CMIYC

[BKTango]

My gawd..you are a joker right? Maybe a court jester? here to amuse??

ROTFLMAO

Sadly no, it's not a joke. It's easy to do, but like I said in my post, the question is should you do it. I am a firm believer in NOT rushing out and obtaining new credit or purchasing a new vehicle right after discharge, unless it's due to an emergancy of some sort an cannot be avoided. Personally, I prefer to enjoy the cash only lifestyle and driving my (paid for by cash) older car. I have no one to answer to or send my money to. It's a nice feeling.

[WantToBeDebtFre]

I really am not concerned about my credit because I want to live on cash like all of you are saying. I really do want to be debt free! I'm just nervous that at some point in my life I'll try to apply for a security clearance or something and will be denied a chance of a lifetime because 15 years before I was bankrupt. Not like I'm waiting for an opportunity of that sorts, I just hate closing opportunities for the future.

[lrprn]

I'm just nervous that at some point in my life I'll try to apply for a security clearance or something and will be denied a chance of a lifetime because 15 years before I was bankrupt.

Luckily the fact that you filed bankruptcy and successfully discharged and closed the case disappears from your credit records after a mandated number of years - seven years after filing for a Ch 13, and ten years after filing for a Ch 7. You won't wear the Scarlet "B" forever

And anyway, it's much better to file and get it over with because the alternative - decades of poor credit history with lates, charge-offs, collections, judgments, garnishments, etc - will hurt you more in the long run.

[whatamess]

A friend of ours in the air force was told he could not declair BR and still have clearance so thats a touchy one. Do you work for the federal government, CIA, FBI, or Military? Do you want to join one of these mentioned jobs?
If so you MAY have trouble, however the military is in lean means now for new recruits, so they may forget the whole thing pretty soon. My husband works for the government. He is a civil servant. Its a non issue.
BR is legal, not a crime. Its an honest way to start over when you are to far gone. Anyone can make a mistake, make a bad budget, have health issues, or loose a job or overtime. Cosidering how many in the US are uninsured and job outsourcing/downsizing, I think BR will be a common problem soon. The foreclosure list in my county has nearly doubled in the last year.

My Husband became a US citizen during this hubaloo, so it isnt as big a deal as we think. We had not filed yet, but our credit was shot.

The only rentals Ive heard flat out decline BR tentants are co-ops. Co-ops decline for many more reasons than that though, even cooking styles!! If you dont live in, or near NYC thats a non-issue anyhow. I dont think co-ops are even in other cities.
I wouldnt stress to much about it all. Do some preparation, like if you need to rent or get a new bank account, sign an agreement before you file.
Good luck!! You will find TONS of great advice here and support.
WAM

[WantToBeDebtFre]

I was in the military but I separated in 2005. However I have a commitment to serve in the inactive reserve until 2010. I no longer train or even wear my uniform for anything but they can call me back anytime. I wonder if I should check with them before I file?

[BKOnce]

In cash we trust!.... credit cards we don't!...