One of the most well-known consequence of bankruptcy in Utah is the loss of property. Be it Chapter 7 or Chapter 13, both types of bankruptcy proceedings can require you to give up possessions for sale in order to repay creditors. Under certain circumstances, bankruptcy can mean losing your stuff: real estate, vehicles, jewelry, antique furnishings and other types of possessions.
Consequences of Bankruptcy. Your bankruptcy can also affect others financially. For example, if your parents co-signed an auto loan for you, they could still be held responsible for at least some of that debt if you file for bankruptcy. If a friend or family member co-signed on a car and its lost they me be effected by your bankruptcy.
Consequences of Bankruptcy. Bankruptcy may damage your credit. However it might be the beginning step to rebuild your credit as well.
Depending on the type of bankruptcy you file, your bankruptcy information can appear on your credit report for up to a decade. Discharged accounts will have their status updated to reflect that they’ve been discharged, and this information will also appear on your credit report.
Getting a Credit Card or Loan after Bankruptcy
Consequences of Bankruptcy. Bankruptcy information on your credit report may make it very difficult to get additional credit shortly after the bankruptcy is discharged — at least until the information cycles off your credit report. It will be important to begin rebuilding your credit right away, making sure you pay all your bills on time. You’ll also want to be careful not to fall back into any negative habits that contributed to your debt problems in the first place.
Getting a Mortgage After Bankruptcy
Consequences of Bankruptcy. Rather than give up your home and try to get a new mortgage after bankruptcy, it may be better to reaffirm your current mortgage during bankruptcy proceedings. You would be able to keep your home, continue paying on your current mortgage — free of other debts — and stay in your current home.
Consequences of Bankruptcy. Again all these consequences can be positive or negative and you really need to work with an experienced bankruptcy attorney to determine if bankruptcy is right for you.