Filing bankruptcy will lower your FICO store (credit score). This will make it more difficult to rent a home from some landlords. It will make obtaining consumer credit more difficult and more expensive. It can affect whether an auto insurer will cover your driving and car, or at least the amount they will charge to insure you. The same goes for your home owners insurance companies.
It could also make it difficult to engage in business trade debt opportunities.
Bankruptcy can remain on your credit report for 10 years, or more for certain loans or life insurance applications of over $150,000 or job applications for a job paying $75,000 per year or more.
All that having been said, it is still better to file bankruptcy in many situations, than to keep fighting with burdensome overwhelming debt that can affect your health, relationships, or your ability to care for your families current upkeep and financial needs. Good Luck!
Bankruptcy will negatively affect your credit and future ability to use money. It may prevent or delay foreclosure on a home and repossession of a car. It can also stop wage garnishment and other legal actions of creditors attempting to collect debts. However, the number of people in the United States filing for bankruptcy is increasing due to the economy and certain protections for financing are becoming easier. Bankruptcy stays on your record for 10 years, however upon discharge you can start to improve your credit score. You may be forced to pay high interest rates and be denied unsecured credit. In some cases people who file bankruptcy already have very low credit scores and the bankruptcy wipes out their debts and allows them to obtain a fresh start. You should seek advise from a local bankruptcy attorney in your area, and you can find many great attorneys on Avvo.
The bankruptcy discharge will be on your credit report for 10 years; however, it generally does not harm your credit for more than a couple of years. You can do things to help your credit. Of course, the best is to have income that will support your loan repayment but also making sure that you make the payments to those parties who report to the credit bureaus will help to mitigate the damages to your credit.
My answer is general information not intended to create an attorney-client relationship. Seek advice from a qualified attorney to see how the law fits your specific facts. If you are in Washington, please feel free to contact us at (425) 283-0432 to see if we might be of assistance.
If you really "need" to file, they are less than not filing. For example, In Washington, judgments are good for ten years and can be renewed for another ten years (if not paid). So, unless you pay the debt somehow, each debt reduced to judgment can follow you for up to 20 years. That means you might be garnished (wages and/or bank accounts). You can lose you job if you are garnished more than three times in a year. Often a garnishment taking 25% of your net pay will cause you to not be able to pay some other important debt/expense. And so on. Good luck!
My response is general information not intended as legal advice or to create an attorney-client relationship. Seek advice from a qualified attorney to see how the law fits your specific facts. I am licensed to practice law in Washington and Oregon.