Why You Should Consider The Pros and Cons Of Filing Beforehand
Should You File For Bankruptcy Protection
ABankruptcy begins when a debtor asks the court to provide
him/her relief from creditors and need to settle debts.
Bankruptcy can be good for some cases, but not for everyone who is
facing some type of financial difficulty. When it comes to whether or
not you should file for bankruptcy, there is no simple answer. In fact,
it may be best to seek the assistance of a bankruptcy attorney or
credit therapist to look at your expenses and the bankruptcy benefits
of your financial issue.
Debt Type Can Influence
Your Decision To File or Not File For Bankruptcy Protection
Before you decide to file for bankruptcy, you need to take into
consideration the kind of debt you owe. After all, the type of debt you
have will influence other elements in your life that then influences on
whether or not you should file for bankruptcy. There are a number of
preliminary factors to take into consideration that’ll influence your
ultimate decision along with the kind of bankruptcy you decide to file.
What are some of the factors you should look at – that will affect your
decision to file or not file for bankruptcy protection?
• Are your financial obligations able to
be discharged in the bankruptcy proceedings?
• What are the costs of filing for
bankruptcy?
• What are the benefits of filing for
bankruptcy?
• What’s your financial future looking
like after you declare bankruptcy?
• What will the bankruptcy do for your
current as well as future employment?
• How will your credit report be affected
after a bankruptcy?
Many times, bankruptcy isn’t the answer to a financial mess – rather
sheer guidance from a credit therapist or attorney can help you. On top
of that, you may not want all financial issues to be handled with the
bankruptcy – cars, homes, etc. Going with an alternative to bankruptcy
may be in your best interest.
Bear in mind that filing for bankruptcy doesn’t mean a total clean
slate and the ability to start all over again. You still need to pay
some of the debts and could have some of your personal items ceased to
pay off the debts. On top of that, a bankruptcy can stay on your credit
report for up to 10 years.
You should really weight the advantages and disadvantages of filing for
bankruptcy and the type of bankruptcy you decide to file. Due to the
complexity of the bankruptcy proceeding, many lawyers will provide
their service voluntarily and for a small price.
Before you file for bankruptcy, sit down with a bankruptcy attorney or
credit therapist to learn what your advantages are compared to your
disadvantages if you were to file. Remember, it’s all based on each
person’s financial circumstances.