When it comes to filing bankruptcy, it can sometimes be a difficult decision as there are various benefits and drawbacks that come along with it. There are a number of things to keep in mind and it can be a lot of work. Some people may not realize this until it’s too late. It can be emotionally draining and it’s hard to know if bankruptcy is the right option for you or not. There are many who research and find that this is not the answer for them and there may be alternatives to you in some cases.
Advantages of Bankruptcy
While this can be a tough decision, some of the ups that come with filing for bankruptcy include:
- Bills go Away: Your bills may go away in many cases and if they don’t, they at least become more manageable for you through a Chapter 13 option. Bankruptcy will help eliminate some or even all of your bills, unsecured debts, and unpaid medical bills.
- Creditor Calls Come to a Halt: Another pro to filing bankruptcy is that all creditor calls will stop. This is because the creditors are not allowed to continue calling you once you file bankruptcy.
- Fresh Start: Filing for bankruptcy offers you the chance to have a fresh start with your finances. You have a chance to avoid overwhelming bills and avoid getting into serious debt again.
- Credit Returns: Over time, your credit score will begin to increase. This is because there are no more late payments on your credit report and there are no other maxed out credit cards on your credit. You are able to wipe out all of your debt or choose to pay smaller amounts each month.
Downfalls of a Bankruptcy
There are also a few downfalls to filing for a bankruptcy, with perhaps the biggest one being how it affects your overall credit score. However, many people see their credit score actually begin to rise. Filing for a bankruptcy can cause an impact on your credit for about 10 years and anyone who runs your credit will see that you filed for one. It is important to be aware that this may negatively affect you when it comes to borrowing money in the future.
Though varying vastly amongst individual cases, another downfall is that you may have to have a difficult time getting credit cards or getting financing for large purchases. It may be harder to buy a car because the interest rates are usually higher after bankruptcy. It can also be harder to get a home loan.
For people who have tried debt consolidation or counseling and still can’t seem to get ahead, filing for bankruptcy may be a great option. This can be a huge relief from debt and in this economy bankruptcy is becoming more and more common. If you don’t have enough in your budget to pay your bills each month, it may be the only choice you have.
If you are considering bankruptcy, you will want to talk with a bankruptcy attorney about your options. An experienced attorney can help you take the necessary steps needed and help you every step of the way. For those that are looking for a break from the financial stress, you may find bankruptcy to be beneficial. Budgets are not going to stretch and there are many that want to get a better grasp on their finances. You can get your life back on track, and get a fresh start by filing for bankruptcy. It is important to remember that it is not so much a moral decision, but a financial decision. If you are anArizonaresident, please contact Bill King P.C at 480-949-7121 for a free initial consultation.
