Understanding the Advantages and Disadvantages of Bankruptcy

When it comes to bankruptcy, it’s a bit of a mixed bag. For some people, bankruptcy is a good thing, but as good as it can be for those people, bankruptcy can also leave people at somewhat of a disadvantage. However, understanding the good and bad nature of bankruptcy will help a person to face the reality. That reality is that as challenging as things may be after going through the process, the immediate help that this legal process can offer may far outweigh any of the negative issues that may arise from filing for bankruptcy.

The Cons of Bankruptcy

For the negative aspects of bankruptcy, a legal filing of this sort may stay on a person’s credit score for as much as 10 years. Having this hit on a person’s credit report can make it difficult to gain the trust of future creditors. While it’s not impossible for a person to acquire credit after a bankruptcy, it does take time. Suffice to say, if a person is looking to make some big-ticket purchases like a car, or they want to apply for a mortgage soon after a bankruptcy has been discharged by the courts, those people shouldn’t expect to get credit approval.

How it can Help

The positives with bankruptcy are that it helps in the immediate. If a person has creditors hassling them, calling day in and day out, if collection calls are the order of the day, a home is about to be foreclosed on or creditors are threatening legal action, bankruptcy can stop all of that. Bankruptcy can help a person regain some financial footing and bring a bit of peace back into their life. With the stress of not being able to pay creditors and how that can be so destructive to a person’s life, bringing a stop to bill collectors is a big relief for most people.

If a person is experiencing minor difficulties paying their bills, there are options to explore, but bankruptcy shouldn’t be one of them. However, if the problem paying bills is more than a temporary issue, and no other option is a viable one, it may be time to speak with an attorney. If you’d like to learn more about the bankruptcy option, or you want to schedule a consultation with a bankruptcy attorney, you may want to check out a resource like http://tulsabankruptcylawyers.net/.

Categories: Legal