Bankruptcy sounds like the end of the world. Credit score? Gone. Extra spending money? Not for years. Loans? Haha, good one. Filing for bankruptcy is considered to be a last resort — something to avoid if at all possible. And it’s certainly not a perfect solution for financial problems, but it’s time to step back and really take a good look at bankruptcy.
Quite simply, bankruptcy does hurt your credit score and will make it difficult, if not impossible, to take out loans or credit cards. But let’s be honest — if you’re considering bankruptcy at all, then your credit score is probably already pretty bad and you have collectors calling your house so much that the last thing you want to do is take out another loan. Your finances are already looking pretty bleak, and it will take a long time to get your credit score back up to a normal number as it is.
Filing for bankruptcy won’t solve everything, and it won’t get rid of your debt. Student loans, for example, will still have to be paid off in full and on time. There is a cost for filing for bankruptcy, believe it or not, and the bankruptcy attorney fees on top of it all can be pretty painful.
But if you’re determined to work hard, bankruptcy can actually be a good thing. There are many different kinds of bankruptcy filings, and a good bankruptcy attorney will be able to look at your financial situation and help you decide on one that works best for you. Many lawyers even provide very specialized help — for example, a Chapter 13 bankruptcy lawyer will help clients who file for Chapter 13, rather than clients filing for Chapter 7 or Chapter 11. Many law firms have strong teams of experienced lawyers who have dealt with hundreds of bankruptcy cases and can provide you with a customized plan for your own situation. Not every law firm does this, mind you, but if you put in a bit of your own research, it’s not hard to find a bankruptcy attorney who will give you the best service possible.
It’s important to remember that millions of Americans deal with bankruptcy each year, but that each case is different. Although you aren’t alone, you also shouldn’t be treated as though your situation is a cookie-cutter image of someone else’s financial situation. Although bankruptcy may be a painful process, it does help many people get through difficult times. See more. Continue your research here.