Bankruptcy is a deeply personal choice for someone to make. And, while it may seem like the end of the world, it can be the best choice for you.
But, how bad is bankruptcy? Do you know the positives and negatives? Is bankruptcy worth it?
If you have asked yourself “Is bankruptcy right for me,” we should find out. See below the pros and cons of filing for bankruptcy. After all, you should know what you are getting yourself into!
The Benefits of Bankruptcy
Are your debts making it impossible for you to cover basic living expenses? Is paying for food and shelter difficult or impossible?
If so, examining bankruptcy makes sense. While you will have to check if you qualify, either Chapter 7 or 13 could be your way out.
Many find their credit scores have already plunged before they file for bankruptcy. These scores average out to scores in the poor range.
Post-filing scores have often lifted to scores averaging out in the low “fair” range. This was regardless of whether they filed for Chapter 7 or Chapter 13.
Additionally, once you have completed your Chapter 7 filing, you can wipe out many kinds of debt. These include past-due living expenses like rent and utility bills.
Credit card and medical debt are also removed. Personal loans, business debts, and other debts will also clear.
It will be tougher to get credit right after our bankruptcy. But, within 18 months, your chances increase.
Your limits are likely to be low, as you are still considered high risk. But that is better than having access to zero lifelines.
Keep in mind that your Chapter 7 stays on the record for 10 years. If you can continue to keep your head above water during that period you score will adjust up again.
Also, do not discount the psychological lift of exiting a terrible situation. The calls from collection agencies stop, along with other stressors.
This opportunity to reboot your life is a great chance for something better. Take advantage of it.
How Bad is Bankruptcy?
Actually, bankruptcy is not bad. There are few downsides to taking hold of your life in this manner.
As mentioned before, quite a bit of owed debt disappears when you file for bankruptcy. But, you will not erase all your debt. What sticks around?
Child support, student loans, and recent tax debt are all still your obligation. It is important that you look at what will still be on your plate before making a move.
No one likes to fail. Most people feel morally obligated to settle their debts. But, when you cannot do it, is it worth the suffering?
Is Bankruptcy Right For Me: Ask For Help
When you realize that the pros outweigh the cons, and you are in trouble, get some help. Waiting is not the thing to do: there is a point where throwing good money after bad only makes it worse.
So, if you have asked yourself “Is bankruptcy right for me?” and the answer is “Yes,” what is the next step?
Our lawyers are human beings who can patiently walk you through the process. Reach out to us for help today. We will help you through this difficult time.