The Other Side of Bankruptcy
Question: In the U.S. a person basically loses everything, including their right to >privacy, and it remains on their credit record for 7 years.
Ten years. Bad credit marks remain for seven years, but bankruptcy stays there for ten.
>.The bad judgement was on our part, when we extended >credit w/out sufficiently checking out the situation or just based on >”hope” that the guy could pay….The creditor has to share responsibility >for what happened, it’s a two-way street.
Answer: Those who see bankruptcy as some horrible evil, a Sin Against The God Of The Dollar, seem to think that all loans should be risk free. If that were the case, if everyone always had to pay everything back and there was never any risk for the lender, then interest rates would be fairly flat, and good credit wouldn’t be an issue – because everyone would be forced to pay anyhow.
Most of the people rallying against bankruptcy have been fortunate to never had to consider it – never had a sting of bad luck like outrageous medical bills, never made the mistake of co-signing a loan they shouldn’t have, never had the guts to risk starting a business and see it fail. They are under the delusion that it’s something people do casually and then dance away from, free of their debts forever. The fact is that it will hound them for at least a decade, as it is about the blackest mark you can have on your credit record.
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