4 Important Facts to Know Before Filing For Bankruptcy
The idea of filing for personal bankruptcy can be stressful, especially when you’re already dealing with the anxiety of crippling debt. However, filing for bankruptcy can provide a lot of relief for those who need it. It’s a complicated process, so you’ll want to enlist the help of bankruptcy lawyers in order to make sure you’re making the best choices for your future. But before contacting a bankruptcy attorney, you may want to have a good idea of what’s in store if you choose to file. Here are four key facts to know before filing a bankruptcy case:
- Bankruptcy filings are public
If you’re one of the 1.5 million Americans who choose to file for bankruptcy every year, one of the trade-offs is some loss of privacy. Bankruptcy paperwork filings are public, so you won’t be able to control whether someone looks up your financial records. In addition, those involved in bankruptcy court cases typically have their names published in newspapers and online. Unfortunately, it’s a fact you’ll have to accept in order to receive the relief bankruptcy can provide.
- It will affect credit
When considering filing for bankruptcy, you’ll want to make sure that it’s really the best and only option. Filing bankruptcy papers can wipe out a good credit score and can be a factor for years to come when making any big purchases. However, filing can allow you to start building good credit again, if your current credit score is less than desirable — which it likely is if you’re at the point of considering bankruptcy. Be sure to consult with a trusted team of bankruptcy lawyers prior to deciding to file. They can tell you whether you may have better choices at your disposal, or whether bankruptcy is the best way to go.
- Not all debt can be erased
Although filing for bankruptcy can be incredibly helpful for those who have credit card debt or older tax debts, it doesn’t wipe out everything. Unfortunately, the majority of student loan debts will not be erased by a bankruptcy filing, and you will still owe unpaid child support or alimony payments. Depending on the kind of debt you have, filing a bankruptcy case can be a huge benefit — or it may not be the right choice to help you.
- A fresh start
For most people who choose to file, declaring bankruptcy can provide a much-needed clean slate. It’s not an instant fix, but it can certainly help get you back on your feet and on a better financial path. You’ll be rid of the anxiety and embarrassment of creditor calls, declined transactions, and cancelled cards, and you can start putting your life back together again with a little bit of forgiveness.
If you’re considering filing for bankruptcy, contact our expert bankruptcy lawyers today. We’ll help you navigate your options and decide on a course of action that will be best for you and your future.