A very common fear when it comes to filing for bankruptcy, is the question of whether or not filing will ruin your life. That may seem a bit dramatic, but bankruptcy can be a scary endeavor, and so the concern of what life after bankruptcy will look like is well placed.
So, will bankruptcy ruin your life?
The easy answer, is no, it will not ruin your life. However, there are multiple factors that will contribute to whether or not you have a smooth recovery after filing for bankruptcy. Ultimately, the decision to file for bankruptcy is in an attempt to improve your life and make it easier to make payments, and afford a more comfortable lifestyle. When done right, filing for bankruptcy can absolutely give you the relief that you are seeking.
What happens to your credit?
One of the biggest things you’ll notice when you file for bankruptcy, is that your credit score will take a bit of a hit, unless your score is already quite low. A Chapter 7 bankruptcy can stay on your credit for up to 10 years. That doesn’t mean that your credit will never recover, but certain aspects of your life, such as applying for credit cards and loans, will be more difficult for a few years. We can help you regain a good credit score after bankruptcy, so it isn’t a lost cause. One thing to consider though, is that missed debt payments, repossessions, defaults, and lawsuits may hurt your credit score more than a bankruptcy would and often can take longer to recover from.
Why you should file now rather than later
If you’re having a hard time deciding whether or not it’s a good idea to file for bankruptcy now, something to keep in mind is that if you’re drowning in debts currently, and have no way of eliminating any of these debts, it will only get worse. Unless your rich aunt dies tomorrow and leaves everything to you, you’ll need a game plan on how to get out of debt, and often, bankruptcy is the best decision. Speaking to a bankruptcy lawyer will help you determine what the best case scenario is, and how you should plan to move forward towards financial freedom as quickly as possible.