Pros and Cons of Filing Bankruptcy

Filing bankruptcy will lower your credit score. This is unavoidable. Bankruptcy will remain on your credit report of 7 to 10 years. But your score need not be lowered for long. Many people find that they actually have higher scores within a relatively short time, by taking proper steps to rebuild credit.

You can recover your credit quickly and completely so that even if the bankruptcy is still on your credit report, it will not hurt you. The key is what you do after you file bankruptcy to raise your score.

You will lose your credit cards after you file bankruptcy. In most cases, when you file bankruptcy your credit cards will be closed. This does not happen in every single case, but you should expect it. You are not permitted to “pick and choose” which creditors you list when you file bankruptcy. You have to list them all.

Bankruptcy will not eliminate all of your debts. This depends, of course, on what debts you owe. Most people know that student loans, child support and most taxes are not discharged in bankruptcy. Although this is true, the elimination of all of the other debt you owe makes it possible to pay the debts not discharged in bankruptcy.

Loans may be harder to get. Bankruptcy can make it more difficult to borrow money, in other words, go back into debt. Difficulty in getting loans depends in large part on what you do AFTER you file bankruptcy. If you take the proper steps to recovery your credit, it’s possible to get a mortgage loan at a good rate in as little as 2 years.

Creditors are eager to loan money, at high rates, to people who just filed bankruptcy because they know that you can only file bankruptcy after waiting a certain number of years. Pros and cons here too. I can show you how to rapidly improve your credit score, and get low rates.

Bankruptcy can carry a stigma, or an emotional feeling of failure. While some feel that filing bankruptcy is a failure IF THEY DO IT, these same people DO NOT feel the same way about their family or friends when they have to file bankruptcy.

This is an odd kind of “double standard” we hold ourselves to. There is no good reason to feel like a failure if you really need to file bankruptcy.

If you’re considering the pros and cons of filing bankruptcy, you don’t need to try to figure it out on your own. Get help from a Board Certified Specialist and Certified Credit Counselor. The list of pros often outweighs the cons!

The “cons” make matters worse the longer you put it off. The attorneys at West Law Office show you ALL forms of debt relief, pros and cons of both bankruptcy and non-bankruptcy, so you will KNOW you have the right solution.