When an individual can’t meet financial obligations and repay their debts, filing for bankruptcy can become a consideration. This situation may have arisen due to a drop in income, excessive expenses, or even mismanagement of funds. While bankruptcy laws have been designed to provide a fresh start, it is not without a price, and there are definite negatives to taking this step. A video consultation with a bankruptcy attorney or other financial expert at Webponder.com can help you weigh the pros and cons of bankruptcy, and give you the information you need to decide if this is the right course of action for you.
Filing for bankruptcy will put an automatic stay on most creditors and stop collection efforts. This can be a welcome relief for someone who has been hounded by calls from collection agencies. And, once the bankruptcy process is complete, which, depending on the type of bankruptcy can take as little as 3 months or as long as 3 years, there is the opportunity to get a fresh financial start and begin the process of rebuilding credit.
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However, filing for bankruptcy means your credit will be ruined for the next few years, and will stay on your report for approximately seven years. It can result in the loss of valued possessions, and even your home. If you file under Chapter 13, you may be allowed to retain your home and many of your possessions, but you will be required to adhere to a strict installment repayment plan under court-regulated financial guidelines.
After filing for bankruptcy, it will be impossible to get a mortgage for a number of years, and loans are likely to come at a high interest rate, if available at all. In addition, bankruptcy can be a personal embarrassment, and it is possible it will impact on employment or career opportunities.
Another consideration is that bankruptcy will not eliminate some debt, such as child support, alimony and school loans, among other things. If your debt consists primarily of the above, it may not be the appropriate course of action for you.
Bankruptcy law is complicated and there are some variations from state to state in property exemptions. While it may seem like the best solution when you are overwhelmed by debt, it may or may not be the best answer in your particular situation. Take the time to talk it through with a bankruptcy attorney or other financial expert at Webponder.com in a video consultation from the privacy of your own home. The experts and professionals you find on Webponder can help you weigh the pros and cons of bankruptcy and help you make the right decision. Professionals on Webponder have likely handled hundreds, if not thousands, or bankruptcy’s just like yours, so don’t go at it alone, and don’t wonder any longer. Sit down for a live, face to face, video consultation with the expert of your choice and get the answers you need and deserve.