In times gone by, bankruptcy was a major social stigma and spelled the death knell for individuals and businesses, in so far as reputation and future credit went. It was a matter of honour for many. You had to be at rock bottom financially with very little option but to declare yourself a bankrupt and all that it entailed.
Sometimes you get turned down because you don't have a credit history. Additionally, you may have just arrived in the country or you have never applied for a loan before and you have paid your bills on time every time. The reason you are usually turned though is because your credit rating isn't good enough or there have been too many entries or notations on your credit rating file.
Other people have to work overtime or have second or even third jobs just to pay off their debts. They sometimes have no idea how much they owe and don't want to find out the extent of their problems because they are afraid to. It reaches a level where they are even too afraid to answer the door or the telephone in case it's someone else demanding money. Bills are left unopened and collect in an accusatory pile on the table. They have no savings and no way to manage their bills. If an emergency occurs, they can't deal with it. They feel as if there is no way out. Often, one spouse keeps the debt secret from the other, leading to arguments, recriminations, separation and sometimes divorce.
If you have entries such as default of payments from previous loans or you are and existing bankrupt or a discharged bankrupt, lenders will probably refuse your loan application. Be aware that if you make inquiries about a loan from several lenders at the same time by way of comparison, your credit file will now have several entries in it. The lender may turn you down for a loan because of that. By the same token, while one lender may refuse your application, another lender could just as easily accept it.
Having stated the down side of bankruptcy, it's fair to say that this is still a practical solution to many who have found themselves in dire financial need. The process of lodging an application for bankruptcy is generally free of problems. Once the period of bankruptcy is complete, you can get on with your life. You will have to wait a while so that you can build up your credit rating again but eventually, things will return to normal one more.
Sometimes you get turned down because you don't have a credit history. Additionally, you may have just arrived in the country or you have never applied for a loan before and you have paid your bills on time every time. The reason you are usually turned though is because your credit rating isn't good enough or there have been too many entries or notations on your credit rating file.
Other people have to work overtime or have second or even third jobs just to pay off their debts. They sometimes have no idea how much they owe and don't want to find out the extent of their problems because they are afraid to. It reaches a level where they are even too afraid to answer the door or the telephone in case it's someone else demanding money. Bills are left unopened and collect in an accusatory pile on the table. They have no savings and no way to manage their bills. If an emergency occurs, they can't deal with it. They feel as if there is no way out. Often, one spouse keeps the debt secret from the other, leading to arguments, recriminations, separation and sometimes divorce.
If you have entries such as default of payments from previous loans or you are and existing bankrupt or a discharged bankrupt, lenders will probably refuse your loan application. Be aware that if you make inquiries about a loan from several lenders at the same time by way of comparison, your credit file will now have several entries in it. The lender may turn you down for a loan because of that. By the same token, while one lender may refuse your application, another lender could just as easily accept it.
Having stated the down side of bankruptcy, it's fair to say that this is still a practical solution to many who have found themselves in dire financial need. The process of lodging an application for bankruptcy is generally free of problems. Once the period of bankruptcy is complete, you can get on with your life. You will have to wait a while so that you can build up your credit rating again but eventually, things will return to normal one more.
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