What effects are Mary and Todd likely to face if they declare bankruptcy? Check all that apply.

They will find it hard to get new loans.

They will find it easier to buy a home, since their debt will have been eliminated.

They will get to keep their cars, but they will not have to make payments.

They will have to pay higher interest rates on any new credit cards they obtain.

They will have poor credit reports.

The correct answer is 1, 4, 5.

1. They will find it hard to get new loans.

4. They will have to pay higher interest rates on any new credit cards they obtain.

5. They will have poor credit reports.

Bankruptcy is termed as legal status of a person who is not able to pay creditors their debts. It is imposed by a court order.

Someone can declare bankruptcy if the value of assets he has less the debt amount he is being owed.

Filing for a bankruptcy damages your credit where debts are discharged without being paid.

1, 4, and 5 just done the assignment and got it correct