The Pros and Cons of Filing for Bankruptcy
Financial problems inflict a significant amount of stress and worry on our everyday lives. Facing a seemingly insurmountable pile of debt can be intimidating and demoralizing, to say the least. However, there are solutions available to you to help you resolve your financial situation. One option you may want to consider is filing for bankruptcy. Before you make a decision though, it is important to know both the positive and negative aspects of bankruptcy so that you can make a fully informed decision.
Filing bankruptcy with an attorney prevents creditors from continuing to pursue collections, such as foreclosures. Once the bankruptcy is filed, your lawyer will deal with creditors directly on your behalf and you will no longer be personally harassed by creditor inquiries. By filing for bankruptcy now, you’re giving your future self the opportunity to rebuild credit and have a chance at financial opportunities that are not currently available to you. Also, you will be able to keep most of your assets, and in most states bankruptcy protects your most essential of assets from being taken, particularly your home and car.
For about 5 years after bankruptcy, you most likely will not be eligible for a mortgage, and your bankruptcy will remain on your credit report for about 10 years. This makes buying property or expensive items, such as a car, very difficult. When you file for bankruptcy, you will have to close all of your credit card accounts. However, this could be considered a positive aspect of bankruptcy because it prevents you from immediately falling back into debt and gives you the chance to restructure your finances. Some people are afraid to file bankruptcy out of embarrassment, but it is preferable to have a chance to restart your life than to face the humiliation and defeat of having your home foreclosed on or your personal property repossessed.
The decision to file for bankruptcy is not an easy one. It will require careful planning and temporary financial limitations to get your life back on track, but it can also be liberating to be given a second chance.
If you are considering bankruptcy and would like to learn more about how it will affect your current and future finances, please contact the experienced Milwaukee bankruptcy lawyers of the DeLadurantey Law Office, LLC today at 414-377-0518.