What Are The Pros And Cons Of Filing Bankruptcy?
Remember, I’m not a lawyer, but I have worked with several bankruptcy attorneys and I’ve worked as a paralegal on several bankruptcy files.
When you're trying to decide whether or not bankruptcy is a good idea for your own finances, there are a lot of factors to consider—and it's worth knowing what each means to the big picture. This is my opinion on the pros and cons of filing bankruptcy.
The biggest advantage to filing bankruptcy is that it gets your debts erased. Sometimes bankruptcy can also help you get out of debt quicker by extending payment plans, reducing interest rates on your credit cards, or allowing you to negotiate settlements with creditors when they're more likely to accept a compromise.
Because bankruptcy erases your debt, it can also be a good way to jump-start your finances into getting back on track. You'll still have plenty of homework and money management skills to learn, but those will be easier if you don't have overwhelming amounts of debt weighing you down.
If you have a lot of credit card debt, it may be smart to file bankruptcy rather than just paying off the balances over time—paying off that much debt can take years and years, and in that time you could end up with even more credit card debt. Bankruptcy can help wipe away any existing credit card debt that might just add on more debt over time.
Filing for bankruptcy can be an exciting and scary adventure. The relief that it can bring to many people after a financial hardship like an illness or the loss of a job is unbelievable. However, the negative stigma that comes with filing for bankruptcy and the long term effects it can have on your credit score make many people choose not to file. The other negatives is you can feel like a failure, suffer from depression and question your life choices. You might even need to see a therapist at some point. It’s not a joke. So you need to know you can get through it.
If you need a free bankruptcy consultation - call this law firm - they do free consultations:
Ascent Law LLC
8833 S Redwood Rd Ste C
West Jordan UT 84088
801–676–5506
Comments