If you feel that filing for bankruptcy is the only way out of the financial hurdle you’re in, it is important to understand how bankruptcy may affect your life before you make the decision to file. Often, there are ways to deal with financial issues,and filing for bankruptcy should be the last resort. This article will provide you with access to the information you need to make an informed decision about bankruptcy.
- Consider other payment options
If you only have a few debts, it may be advisable to contact your creditors towork out a payment plan with them, rather than filing for bankruptcy.
- Bankruptcy impacts more than your credit score
Although filing bankruptcy may provide immediate relief from credit card debt, it will mar your for credit history for the next ten years. As a result, you’ll have trouble getting new credit, a mortgage, a job, insurance, or even a rental dwelling.In some cases, landlords may require an additional security deposit, and insurance companies may charge higher premiums when they find out that you’ve filed for bankruptcy.
- Bankruptcy doesn’t provide fulldebt repair
Not all debts can be discharged by bankruptcy. Secured debt, including mortgage loans, child support and alimony, home equity lines of credit, auto loans, federal and state income taxes, and federally guaranteed student loans must still be paid.
- Seek debt counselling
Non-profit credit counselling can be a great way of getting debt help. If you determine that bankruptcy is your only option, a bankruptcy attorney who is affiliated to a federal court can explain the process, timeline, and your legal rights at no charge.
- Get a Bankruptcy lawyer to help you
It is very important that a bankruptcy case be filed and handled correctly. The rules are very technical, and a misstep may affect your rights as a debtor. Since bankruptcy has long-term financial and legal consequences – hiring a competent attorney is strongly recommended.
If you are planning on filing bankruptcy, make sure you get a good, objective bankruptcy attorney who knows the laws and what is required when filing for bankruptcy. A good attorney will help you avoid costly mistakes, thereby making the bankruptcy process as smooth as possible for you.
As always, it is important to discuss your options with a bankruptcy attorney before making any major decisions about your financial situation.
If you are in Utah, consider getting help from our highly experienced Utah bankruptcy lawyers to assist you handle your debt issues. During your free initial consultation with our bankruptcy attorneys, we will help you explore your Utah bankruptcy and non-bankruptcy options and determine the most appropriate solutions for your situation.