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I would not underestimate the impact bankruptcy plays in someone's life. You would be getting a bankruptcy on your record in the prime of your life (mid-twentie
by zhynn 6y ago
I would not underestimate the impact bankruptcy plays in someone's life. You would be getting a bankruptcy on your record in the prime of your life (mid-twenties), making it very very difficult to borrow for the next 10 years. You end up starting building credit in your mid to late thirties, and maybe you are able to participate in the modern economy in your forties. It sucks. I lived it.
- jefftk 6y agoI'm talking about declaring bankruptcy immediately on graduating, at age 21 (not mid-twenties), and it's off your record seven (not ten) years later, at 28.
- Spivak 6y agoHowever, in a world in which it is common for college students to declare bankruptcy immediately after graduating, financial institutions might take advantage of that information and realize that their creditworthiness is much higher than the bankruptcy would predict. Kind of like how the stock price many companies go up after they cut retirement benefits. This of course will be to the spiral and collapse of the college loan system.
- imtringued 6y agoHow high is the creditworthyness of someone who is on a repayment plan to service another debt? It is practically zero. Declaring bankruptcy just limits the duration of the mortgage to 7 years. You still have to pay as much back as you can unless you are literally an unemployed hobo on the street for 7 years.