Why A Chapter 7 Bankruptcy Is Worth It

When you choose to file for bankruptcy, you are announcing that you are not able to pay off your debts. When this is the case, you'll have the opportunity to discharge all of your debts and receive a fresh start. However, you might wonder if you will face any consequences for filing for bankruptcy. While there are some downsides, you will be able to avoid many consequences by consulting with a bankruptcy attorney.

The Downsides of Bankruptcy

Bankruptcy is generally meant to be a decision you will make as a last resort when there is no other way you can pay off your debt. Your credit score will drop and this can make it more difficult for you to obtain credit in the future. 

When filing for bankruptcy, it will become public knowledge that you have chosen to do so. Your financial information will also become public knowledge because it will be a part of your court records. However, because there are many benefits of filing for bankruptcy, you might consider the downsides to be worth it. 

Why You Should Still File

If you are thinking about filing for bankruptcy, this means that you probably should so that you can eliminate your debts and begin rebuilding your credit. The sooner you do this, the sooner you will be able to obtain a mortgage at a better rate or obtain a loan to start a business. 

When you have a concern about your decision to file for bankruptcy, you will always want to bring this up with your bankruptcy attorney. For example, if you are concerned that you might lose your home, it's important to not make this assumption. In many cases, an individual who files for bankruptcy is allowed to remain in their home even when filing for Chapter 7.

In some cases, you're even allowed to have some cash after you have filed for bankruptcy. This depends on the state in which you reside. If you have savings, a good portion of this will go toward paying creditors. However, you'll be able to keep some of your savings to use for paying bills and rebuilding your life.

An Attorney Makes the Process Easier

Filing for bankruptcy is not as difficult when you are working with a bankruptcy attorney. They will help you file all of your paperwork, assemble any financial documents you'll need, and inform you about your rights and responsibilities.

Contact a local bankruptcy attorney to learn more.