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Do other countries allow people to declare bankruptcy and discharge their debt without consequences? The 7 year black mark is no one wanting to loan you money
by DashRattlesnake 10y ago
Do other countries allow people to declare bankruptcy and discharge their debt without consequences?
The 7 year black mark is no one wanting to loan you money because you've shown you won't pay it back, and it's 7 years because the government says it can't be longer. It's not anything truly harsh like prison sentence or anything.
- mgkimsal 10y agoAnd yet, there's a growing industry of people who explicitly target the newly bankrupt (with high interest loans).
- toomuchtodo 10y agoThis is incorrect. Lenders are more likely to lend to you after bankruptcy, as you're not permitted to declare bankruptcy again for several years. Now, if you're credit score is simply low due to negative marks from late payments or charge offs, yes, it's likely you won't be lent to again until you take action to raise your credit score (by making payments on time).