• Losing your home is one problem associated with bankruptcy.House image by Gon?¡ìalo Carreira from Fotolia.com
  
  Filing for bankruptcy comes with its own benefits. Creditors are no longer able to contact you about past due amounts and depending on the type of bankruptcy, it wipes the slate clean. You don't have to worry about paying back money owed, be it to credit cards or other bills. Before filing for bankruptcy, it's important to weigh the pros and cons of your decision. While you may focus on the positive aspects of the filing, you must also look at problems that arise after a bankruptcy.
  
  

Discharge Problems

• Discharge refers to the date when the bankruptcy appears on your credit report and your debts are wiped out. If you have a good employment record, you'll find that some creditors may be willing to offer you a new line of credit, usually at a high rate, but only after the discharge occurs. The company knows that you can't default on your payments for a specific amount of time following the bankruptcy. If the date of your discharge changes or some of your past debts are missing from the final ruling, you'll have problems obtaining credit from that company. Discharge problems also occur when you attempt to add creditors to your bankruptcy that weren't previously listed on the bankruptcy.
  
  

Credit Report

• Filing for bankruptcy significantly impacts your credit report. The bankruptcy remains attached to your credit report for at least seven years. This can make it difficult to obtain credit for some time, but this isn't always the case, as some creditors realize that you can't file for bankruptcy again in the near future and view you as an asset. But just as many or more creditors consider you as a risk and won't approve you for a credit card. Banks may also view you as a risk and decide not to loan you money for a house, boat or car. You also risk having problems in finding a new job, as some employers run credit checks on employees. Finding an apartment or rental home is difficult as well, as some landlords won't rent to tenants with a bankruptcy on their credit report.
  
  

Loss of Assets

• Loss of assets is a problem associated with bankruptcy. Assets refer to anything you own that has a tangible value, including houses, property and vehicles. In some cases, the items are seized and sold off, with the money going back to your creditors. Your bankruptcy counselor should try and help you retain these items and prevent the problem from occurring.