this post was submitted on 26 Dec 2023
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I got talked into bankruptcy (by a bankruptcy lawyer, surprise surprise). It cleared $12k of credit cards and bank fees but not the then-$50k of student loans and the spending habits that were the real problem. Now I learned my lesson. No credit cards. Save up and pay. Have an emergency fund that can cover your expenses for months and months in the event you lose your job, or your most expensive unplanned repair. That's the real life saver.
How has bankruptcy affected you when you've gone to apply for things? Has there been any real long term effects when you apply for like a house or car loan?
After 7 years the bankruptcy disappears from your credit report. After that it's like it didn't happen.
I was able to get a car loan a few years after the bankruptcy. It was dumb, I hadn't fully figured out my money situation yet. Bankruptcy didn't fix that spending habit. But that was the tipping point. When my minimum expenses between the car, student loans, and living expenses exactly equaled my salary, I started trying to beat my way out of the mess. The car I currently own, I paid for up front. By the time I bought a house, the bankruptcy had disappeared off my report. Now the plan is pay off the mortgage and never have a credit score again.
Bankruptcies fall off your credit report after 7 years. I think the only thing you are blacklisted from after that 7 year period is the bank that credited you and lost money.