Understanding bankruptcy

What are the negative effects of bankruptcy?

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While it’s true the bankruptcy will stay on your credit report for 7 years, what effect will that really have on your life?

1. Might be difficult to rent

Will you need to rent in the next 7 years?

If you already have a home, filing for bankruptcy doesn’t automatically mean you’re going to lose it!

Talk to a bankruptcy attorney and see what options you have. There are many homeowners in America who file for bankruptcy and get to keep their home.

In fact, a lot of homeowners facing foreclosure use Chapter 13 bankruptcy to stop foreclosure permanently!

Even if you aren’t prepared to move forward with Chapter 13 bankruptcy, Chapter 7 can also put a temporary hold on the foreclosure with an automatic stay while you get your affairs in order.

The point is, it’s highly possible that you’ll be able to keep your home, even after declaring bankruptcy, and you won’t need to rent for the foreseeable future anyhow.

2. Makes getting new credit cards highly unlikely

It’s true that most lenders aren’t going to be interested in giving you credit for some years to come.

But, honestly, is that such a bad thing at this point?

Whatever happened in your life, whether it was medical bills, credit card debt, or some change in life situation that turned your finances upside down, it might not be such a bad thing to live within your current means for a while until your life and your income have stabilized.

And while bankruptcy is certainly going to have a negative effect on your credit score, a few years down the road, you’ll get the chance to rebuild it, without carrying around all this extra unsecured debt for decades to come.

3. Buying a home will be out of the question for a little while

As covered above in point #1, you may not need to buy a home for the foreseeable future.

The other thing to consider (while rare), is that if you are married and only one of you will be filing for bankruptcy, it may be possible for the one whose credit remains intact to purchase a home independently.

 

You can find out what your future might look like by calling and speaking to one of our bankruptcy attorneys, free of charge.

We understand that every situation is different. No two cases are identical, and whatever has led you to this decision hasn’t been easy. We’re here to ease the burden of your financial stress, and we won’t stop working for you until every last penny of your debt is gone - that’s our guarantee to you.

There are going to be challenges when you file for bankruptcy, but with our team of experienced bankruptcy attorneys on your side, we hope to make getting out of debt as easy for you as possible. We think you’ll be quick to find the silver lining in your new, debt-free life!

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