Bankruptcy Filing: To Do or Not to?
It is quite obvious that people file for bankruptcy when they are unable to repay their loans and need a helping hand to resolve the financial complications. It is mainly for the reestablishment of their credit score. Besides having many advantages, bankruptcy filing has some drawbacks also. You can ask your bankruptcy attorney in Edmond, OK, about it. The situation may compel you to file bankruptcy, but before filing it, you should have a clear idea about the pros and cons of it.
Talking about the disadvantages the foremost thing that comes to your mind is the credit score. There are many such potential problems which you should know before filing for it.
- If you fail to exempt all the properties you own to bankruptcy, those are at high risk to be sold or seized.
- One bankruptcy filing will be marked in your credit score for 7-10 years for Chapter 13 and Chapter 7 respectively.
- In future, you may have an issue to get a loan or a mortgage.
- The companies may refuse you to facilitate with credit cards.
- Even after filing for bankruptcy, you may not be discharged from several loans including students, tax debts, support orders etc.
- You may face difficulties in getting a job and even a rented home.
- You will be safe from the creditors who can desperately take any action to collect their debts. You will not have to face any harassment for the repayment. Once you file for bankruptcy, you are nowhere responsible to repay them directly.
- With the right use of bankruptcy exemptions, you can carry on the process and repay all your debts without losing any of your existing properties.
- You can utilize the time of 7-10 years in a positive way. You can employ these years in building your reputations again. You can gain a good credit score by lending small amount and repay them on time. Once you pay back the loans, the record will not report the debts as paid.
- After this tenure, you can go for another loan. Generally, you need to go through a financial management course during this period to avoid such situations further.
Chris Mudd & Associates provide bankruptcy attorney in Edmond, OK, to deal with all types of cases from simple to a complicated one. You can look for their help and get it done without any hassle.