Bankruptcy is a legal process that gives an individual or business a way to completely eliminate debt or restructure their debt depending on the circumstances. The ultimate goal of this process is to give the person or business owner a fresh financial start without the worry of collection calls and the burden of staggering debt. Besides hiring a good Bankruptcy Attorney in Marion, IL to help you, you need to learn more about how it affects you. The following are some of the considerations you should take under advisement before filing.
Should you file?
Ask yourself if you really need to file for bankruptcy. If you can manage your debt without filing, maybe you should give that a try. However, if you are in debt that is overwhelming and beyond your means, it’s time to consider filing. If you are facing home foreclosure, wage garnishment, and/or vehicle repossession, declaring bankruptcy will allow you to start over financially.
How will bankruptcy influence your life?
There are so many myths and misinformation about bankruptcy out there, that it’s hard to know what is and isn’t factual. One myth is that bankruptcy ruins your credit for 10 years. Technically, it allows you to rebuild your credit as opposed to ruining it. Bankruptcy stays on your credit report for 7 to 10 years, it does not totally prevent you from getting credit cards or financing in certain circumstances. You may pay more in interest rates, but you can start over with a bankruptcy.
How does bankruptcy affect your credit?
Bankruptcy does put you at a disadvantage for obtaining loans and credit cards, but it does make it easier to live within your means and stick to a cash-only lifestyle for a few years. It may also affect your ability to rent certain kinds of property and your ability to obtain certain jobs. If you already own property and have a good job, that’s not an issue.
Bankruptcy comes with many benefits including eliminating or restructuring debt, preventing harassing debt collection calls, and allowing you to be debt free in a short time. Along with those benefits you have to deal with the disadvantages like how it affects your credit and lifestyle for 7 to 10 years depending on the type of bankruptcy you file. A Bankruptcy Lawyer in Marion, IL can help you find out if this is the right debt-relief solution for you.
