The key consequences of discharging a loan through bankruptcy are mostly negative.
The first key consequence of discharging a loan through bankruptcy is that you are likely to massacre your credit score in the process. Actually, the worst thing you can do to your credit score is get yourself to a situation where you have to discharge a loan through bankruptcy.
The second key consequence of discharging a loan through bankruptcy is that you are likely to have difficulties getting certain types of jobs in the future. That is because employers will want to know if you have ever suffered ‘pecuniary embarrassment’ in the past.
The third key consequence of discharging a loan through bankruptcy is that you are likely to have to face extreme difficulties being extended credit facilities in the future.
All along, it is worth remembering that not all loans can be discharged through bankruptcy. Thus, for instance, if you are filling up the application at fafsa.gov under the impression that you will discharge the loan through bankruptcy, you are very mistaken. That is because, if you visit this site, which mostly deals with matters to do with educational loan repayments, you will discover that the option of discharging such loans through bankruptcy simply doesn’t exist.