Bankruptcy Can Hurt for Decades
Jay Zagorsky, co-author of the study and a research scientist at Ohio State, notes that high prices for gas, food and housing, combined with crushing debt, can make bankruptcy seem like an easy way out with a clean slate.
"But," he adds, "to experience what people may heard of as a 'fresh start,' that may take longer than they expect or would like."
The survey showed a few bright spots, but overall, bankruptcy wounds take a lot of time to heal. While those who went bankrupt were able to get a job and a car more quickly than their peers, they were also saddled with more car debt. The percentage of bankrupt respondents with car debt declines with time, but never reaches the lower 42% level of those who never filed.
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