All About Bankruptcy

If you're considering personal bankruptcy,

here is how the process works......... By THE INVESTOPEDIA TEAM Updated September 02, 2021 Reviewed by THOMAS J. CATALANO

If your debts have become unmanageable or you're facing foreclosure on your home, you might be thinking about declaring bankruptcy. While bankruptcy may be the only way out for some people, it also has serious consequences that are worth considering before you make any decisions. For example, bankruptcy will remain on your credit report for either seven or 10 years, depending on the type of bankruptcy.1 That can make it difficult to obtain a credit card, car loan, or mortgage in the future. It could also mean higher insurance rates and even affect your ability to get a job or rent an apartment. This article explains how bankruptcy works and also offers some alternatives to bankruptcy.