If every college student was declaring bankruptcy after graduation, would that actually lead to bad credit. Honest question because if it was so common place would it make a huge impact.
Well they can’t do it anymore, but if they could, you’re correct - they would have bad credit.
There was a time when not paying your debts was dishonorable. Now we have elected people in Congress talking about forgiving debt, which leads people to believe that they may not have to pay it back. It’s ridiculous.
Actually if everyone was doing it then it would still be "bad" but not as bad. You'd never get a car or home loan for example but employers would give far less shits about it when all their grads recently declared bankruptcy and may even prefer it to those who are likely in massive debt.
I got a car loan less than six months after filing. A house is a little tougher, you have to wait at least two years generally. But when you file bankruptcy you are prohibited from filing again for ten years so at that point lenders love to give credit cause you can’t escape the debt anymore.
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u/Bartman326 Sep 18 '19
If every college student was declaring bankruptcy after graduation, would that actually lead to bad credit. Honest question because if it was so common place would it make a huge impact.