If you have debts stacking up, it can be very stressful. In some cases, declaring bankruptcy might be the best way to get out of the situation. But, before you start preparing the paperwork, there are some pros and cons that you might want to consider.
Disadvantages of Filing for Bankruptcy
The most significant issue is that bankruptcy will be on your credit report for ten years, and it can be a negative issue. For example, some banking companies may automatically cancel your credit cards if you file for bankruptcy. In some cases, you could pay higher interest on any loans that you want. It’s also possible that having a bankruptcy on your record can make it difficult for you to get a job.
Another significant disadvantage is that you may get some of your property and investments seized. This money will then be used to pay your creditors. In other cases, any liens, student loans, or tax debts may be made non-dischargeable, which means that you will have to pay these debts back. A bankruptcy attorney in Santa Barbara, CA, can explain how this process works and what type of assets you could lose.
Advantages of Filing for Bankruptcy
While there are several downsides, there can also be plenty of positives to be gained by filing for bankruptcy. First, for some people, this can be the best way to get control of their finances. In some cases, attending financial education might be a condition you need to meet to be able to file for personal bankruptcy. Because of this, it’s common for people to begin to improve their credit scores after filing for bankruptcy, as they start to make wiser choices.
Another significant benefit is that you can put a stop to all the debt collection agents calling you. It will also put a stop to all the utility shutdowns and threats of repossession, which happens when you file for bankruptcy. Also, you could use the bankruptcy process to discharge several debts, so you won’t have as much to pay back to creditors.
Finally, while you might risk losing some assets, this isn’t always the case. There are numerous bankruptcy exemptions that you could use to protect your property from foreclosure. To see whether or not these exemptions apply, you might want to talk to a bankruptcy attorney in Chatsworth, CA.
File for Bankruptcy
The bankruptcy process can often be confusing and stressful. Thankfully, an experienced legal team can guide you through. If you’re looking for bankruptcy help in California, your best option is to turn to the Law Offices of R. Grace Rodriguez. With 20 years of legal experience, we make sure that you have the best possible legal representation at an affordable price. If you need more help deciding if bankruptcy is right for you, or to begin the procedure, call our friendly team and book your free consultation today.