Personal bankruptcy 1148 | Business & Finance homework help
Personal bankruptcy should be the choice of last resort because it can have long-term negative effects on a person’s ability to obtain credit and other financial services. Bankruptcy will stay on a person’s record for up to 10 years and make it difficult to secure employment in some professions. Additionally, filing for bankruptcy is an expensive process which can take months to complete. During this time you may have difficulty paying bills or making ends meet as your income is likely reduced.
Furthermore, certain types of debts such as student loans, child support arrears, alimony payments, taxes and civil restitution are not dischargeable through bankruptcy so those obligations would still need to be paid even after the filing. Finally, there are several alternatives available that may help people avoid having to file for bankruptcy such as debt consolidation or working with creditors directly to negotiate a payment plan or reduce interest rates/fees associated with existing debt.