How much is post bankruptcy interest ?

creditquestion2014 · ‎06-22-2014

My debt amount’s not that high. But for curiosity’s sake, I heard you get charged a much higher interest after bankruptcy. Can someone give me an actually number comparison so I can get a better idea the difference between say average credit and post bankruptcy credit and how that translate to interest difference?

StartingOver10 · ‎06-23-2014

If your debt amount is not that high than don't even consider filing for BK.

BK is not to be taken lightly. It is a chance to start over when you are faced with insurmountable debt. If you file Ch 7 it stays on your report for 10 years and 7 years for BK 13. You can get credit quickly thereafter, but you still have to go through a rebuilding stage.

As to the interest - there are companies that won't give you credit with a BK on your credit (see thread with BK blacklist).

How do you measure that impact as it is much larger than higher interest...it is no chance at all.

With small debt consider doing the snowball method of payments. It is much more effective long term for you. Save a bk for more serious circumstances.

ezdriver · ‎06-23-2014

@StartingOver10 wrote:
If your debt amount is not that high than don't even consider filing for BK.

BK is not to be taken lightly. It is a chance to start over when you are faced with insurmountable debt. If you file Ch 7 it stays on your report for 10 years and 7 years for BK 13. You can get credit quickly thereafter, but you still have to go through a rebuilding stage.

As to the interest - there are companies that won't give you credit with a BK on your credit (see thread with BK blacklist).
How do you measure that impact as it is much larger than higher interest...it is no chance at all.

With small debt consider doing the snowball method of payments. It is much more effective long term for you. Save a bk for more serious circumstances.

This is really good advice. I agree with it completely.