Why You Should Consider The Pros and Cons Of Filing Beforehand

Should You File For Bankruptcy Protection

ABankruptcy begins when a debtor asks the court to provide him/her relief from creditors and need to settle debts.

Bankruptcy can be good for some cases, but not for everyone who is facing some type of financial difficulty. When it comes to whether or not you should file for bankruptcy, there is no simple answer. In fact, it may be best to seek the assistance of a bankruptcy attorney or credit therapist to look at your expenses and the bankruptcy benefits of your financial issue.

Debt Type Can Influence Your Decision To File or Not File For Bankruptcy Protection

Before you decide to file for bankruptcy, you need to take into consideration the kind of debt you owe. After all, the type of debt you have will influence other elements in your life that then influences on whether or not you should file for bankruptcy. There are a number of preliminary factors to take into consideration that’ll influence your ultimate decision along with the kind of bankruptcy you decide to file.

What are some of the factors you should look at – that will affect your decision to file or not file for bankruptcy protection?

•    Are your financial obligations able to be discharged in the bankruptcy proceedings?
•    What are the costs of filing for bankruptcy?
•    What are the benefits of filing for bankruptcy?
•    What’s your financial future looking like after you declare bankruptcy?
•    What will the bankruptcy do for your current as well as future employment?
•    How will your credit report be affected after a bankruptcy?

Many times, bankruptcy isn’t the answer to a financial mess – rather sheer guidance from a credit therapist or attorney can help you. On top of that, you may not want all financial issues to be handled with the bankruptcy – cars, homes, etc. Going with an alternative to bankruptcy may be in your best interest.

Bear in mind that filing for bankruptcy doesn’t mean a total clean slate and the ability to start all over again. You still need to pay some of the debts and could have some of your personal items ceased to pay off the debts. On top of that, a bankruptcy can stay on your credit report for up to 10 years.

You should really weight the advantages and disadvantages of filing for bankruptcy and the type of bankruptcy you decide to file. Due to the complexity of the bankruptcy proceeding, many lawyers will provide their service voluntarily and for a small price.

Before you file for bankruptcy, sit down with a bankruptcy attorney or credit therapist to learn what your advantages are compared to your disadvantages if you were to file. Remember, it’s all based on each person’s financial circumstances.