Go bankrupt today, borrow tomorrow.

Used to be that filing personal bankruptcy made it hard for you to borrow money for some time afterwards. Times have changed.

I know of one person who bought a new car within a month after her bankruptcy was final, and the interest rate wasn’t bad either. A friend who works in the subprime mortage market says he’s seen home loans go to close the day after a bakruptcy cleared the courts.

These are secured loans, and if the borrower defaults, the lender can take possession of the car or house, so their risk is less than it owuld be with unsecured loans, but it is still a much higher risk than lenders have been willing to take in the past.

The new bankruptcy laws have made no change in this situation. In fact they do not seem to have affected much. I know one bankruptcy attorney who says that his business is up a little bit since the law passed.

If you are drowning in debt, take a careful look at bankruptcy. It could be your best option.

Read more: Should you File for Bankruptcy?

You must be logged in to post a comment.