Bankruptcy – The Last Resort

Before you decide to declare personal bankruptcy, make sure you consider these facts.

1. Bankruptcy doesn’t relieve all debts

Debts such as back taxes less than three years old, student loans, alimony, child support and debts incurred through fraud are typically not dischargeable.

2. Bankruptcy can be expensive

First, there are the obvious expenses of filing costs and attorney fees. Also, a record of your bankruptcy will remain on your credit report for seven to ten years. This could make it difficult to obtain any new loans and, if you do happen to obtain new credit, the interest rates and repayment terms will most likely not be favorable for you.

3. Bankruptcy affects more than your credit

• Emotional stress
• Decreased ability to rent an apartment or obtain affordable insurance.
• Potentially affect your ability to gain employment or promotions.

4. Bankruptcy does not change your financial habits

Bankruptcy may not solve your long-term financial problems. Without a change in lifestyle and spending habits, you may very well find yourself right back where you started.

A local bankruptcy attorney can help you understand the differences between Chapter 7 bankruptcy and Chapter 13 bankruptcy, so that you can make an educated decision about the best next step for you. Fill out the form below for a free bankruptcy case evaluation by a local attorney.