Things for prospective filers to consider?

[calamityjenn]

In another thread, someone mentioned not entering into BK lightly, as there are many things that prospective filers might not have thought of in terms of how bankruptcy can affect their lives. What are some of these factors, both positive and negative?

(by the by, I paged through the FAQs, but if I missed a similar entry, let me know... hate to have anyone repeat info! Thanks!)

[GettingThere]

Pros

Well, for me it was definitely the last resort.

We were in foreclosure and were trying to get refi'd. Got such a runaround from a broker, I can't even begin to put into words. We wanted to save our home and I can say I feel like a TON of weight has been lifted from my shoulders. I actually welcome making the payments so we can our lives back on track.

[SinkingFast]

BK is a wierd thing. If you file do some life changing event beyond your control, future Creditors tend to have leniency. Job loss, medical issues, disablity. Events you could not control that impact your ability to continue to pay for your lifestyle as it was before the event occurred.

BK can affect your ability to get a job.

If a prospective employer is considering 2 equally qualified candidates and it comes down to the back ground search,........ One filed BK and the other didn't, the one who didn't file BK could probably get the job.

BK enters into all kinds of "Morals Issues" decisions with Creditors.

It can impact whether or not an insurance carrier will offer you insurance. If the carrier does, it could be with a sub prime company at higher premiums. State Farm, Farmers, pick any major name you can think of. They have their top line companies that offer insurance to better clients. Then they have their lower tier companies that deal with clients who have less than perfect credit histories.

Auto loans will come at higher interest rates, and many times from sub prime lenders.

Home loans. Same thing. Higher interest rates. Sometimes sub prime lenders.

Credit Cards. You may never get a card from a Creditor you filed BK against again. It's possible, but not likely. Some Creditors are just not BK friendly at all. If you have a BK, they won't issue you a card. Some will let you have a CC at higher interest rates, possibly charging annual fees, maybe the CC will have to be secured, and the line of credit will be limited.

Possibly apartments you may want to rent from won't accept you due to BK in your Credit History. People have posted problems with that on the Forum.

Banks may choose not to accept you for checking and/or savings accounts due to BK.

Utilities can require HUGE deposits to get service if you filed BK against a utility. That issue was recently addressed. People who kept their utility bills paid didn't have that problem while people who filed against utilities did.

It's gonna take a long time and lots of extra dollars paid in interest of dealing with the sharks to re-establish yourself to prospective Creditors.

And then, there's always that question on every credit application,........ "Have you ever filed BK before? If so, when?"

We haven't filed yet. This is just stuff I've read about and learned about since joining here.