bankruptcy pro and cons

Pros and cons of bankruptcy

When you file for a bankruptcy, your life can be affected in several ways. It can affect you both positively and negatively in some ways. Some of the positive effects of bankruptcy are that your debts will be under control and you can get instant relief from creditors, collecting agencies, and the debts that are following you around. Payments that were once dragging you down every month can vanish or be made easier to pay. If you are at risk of loosing your home a Chapter 13 bankruptcy can help save your home and get your mortgage problems under control.

Some of the negative effect of filing for bankruptcy may include an impact your credit score which can make life more difficult for a time obtaining a home for example. Even though your credit rating will be affected negatively – the effects are not permanent and most of our clients actually increase their credit score by filing bankruptcy. If your credit score was wasn’t good to begin with then it won’t be affected that much. Employment -when you go to apply for a job, the law will protect you against discriminatory treatment.

Your goal of a bankruptcy is a discharge that usually comes 90 to 120 days after you file a Chapter 7 case  and in a Chapter 13 case that happens once you have make all the required plan payments. There is no reason to feel guilty about bankruptcy if you’ve found yourself in financial hardship due to unforeseen circumstances that you are seeking relief from. The most common reasons people file for bankruptcy in the United States are: Medical debt, job loss, divorce or separation, and/or uninsured expenses. In some cases people have control over this, but often these reasons are beyond your control. While there are some negative ways bankruptcy affects your normal life, it is not permanent and can provide you with the most positive outcome: a fresh start.  Learn more about a fresh start in Utah in my book: The insiders guide: Getting a fresh financial start in Utah.

Leave a Comment