Bankruptcy
Personal bankruptcy is generally a last resort for financial troubles because the results are long-lasting and far-reaching. A bankruptcy stays on your credit report for 10 years and makes it very difficult to get further credit, buy a home or get life insurance. In some cases this can even affect employment prospects.
Having said that, bankruptcy is a legal procedure that offers a fresh start for people who can't satisfy their debts. When a bankruptcy is granted, the person receives a court-ordered discharge that says they do not have to repay certain debts.
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