Answer:
B. It severely lowers a persons credit rating.
Explanation:
Immediately a person files for bankruptcy, their credit history changes to bankrupt status instantly. The bankruptcy status may stay up to 10 years. It becomes very challenging for such individuals to get credit facilities. Any lender seeking to get their credit history to advance them a loan will get a bankrupt status as the feedback.
Bankruptcy means that the person does not have sufficient assets to cover their debt obligations. All their credit cards get canceled. The bankruptcy status creates a long term negative effect on credit history.
