Loanfactz Definitions
Glossary of Legal Terms, Loan Terms and Home Construction, Repair and Maintenance Definitions. Some words have more than one meaning. Only those meanings relating to this site will be used.
All of B
Bankruptcy
Bankruptcy is legally declaring you are unable to pay your debts as they become due. Bankruptcy can severely impact your credit and your ability to borrow money. Talk to a credit counselor as soon as you realize you are having problems paying your bills on time to try to prevent bankruptcy.
Use Bankruptcy as a Last Resort
Unlike negative credit information that stays on your credit report for 7 years, bankruptcies stay on your credit report for 10 years. Bankruptcy can make it difficult for you to rent an apartment, buy a house or condominium, get some types of insurance, get additional credit, and, sometimes, get a job. In some instances, bankruptcy may not be an easily available option.
|