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Home 9 Articles 9 Answering your concerns about filing for bankruptcy

Answering your concerns about filing for bankruptcy

Bankruptcy comes with consequences, but the advantages may outweigh the setbacks. It is possible to recover sooner from a bankruptcy than you might think.

Many of the Milwaukee residents who are dealing with difficult financial challenges may have been told by well-meaning people, including financial advisors, to avoid filing for bankruptcy at all costs. Is this a good idea? Not always, according to many sources. In fact, a bankruptcy discharge may have numerous benefits that could put a person ahead of others who are still struggling to stay on top of their debt. The following points address some of the questions that are common among those who are considering filing for Chapter 7 or Chapter 13 bankruptcy.

Is filing for bankruptcy going to destroy my credit?

It is true that bankruptcy has a negative effect on one’s credit report. However, this is not necessarily the end of the world. Once the bankruptcy discharge is complete, people can begin rebuilding their credit immediately. The process may take a while, but with smart financial decisions moving forward, it is possible to have a good credit score in a few years.

What are the advantages of filing for bankruptcy?

According to the American Bar Association, the advantages of bankruptcy may be surprising. These can include the following:

  • Creditors being forced to stop their collection efforts as soon as the bankruptcy is filed
  • Getting a fresh financial start, or a “clean slate”
  • The peace of mind knowing that most debts are gone
  • Being able to start sooner on fixing credit

In fact, now that bankruptcy is more common, it is no longer seen as the taboo subject it was in the past. Many lenders are willing to help those with poor credit re-establish themselves after a bankruptcy.

What are the disadvantages?

Business News Daily makes a point that bankruptcy does show up on a person’s credit report for up to 10 years. Also, some people may lose property, such as their home or car. However, these are all issues that can be dealt with.

Can I repair my credit and get loans again after a bankruptcy?

U.S. News affirms that recovering after a bankruptcy is more than possible. Those who pay their bills on time and are careful with the credit they accrue have a good chance of raising their credit score and being approved for loans in the near future. These may include major loans, such as a car loan and home mortgage.

If you are experiencing crippling financial difficulties, it may help to know that your situation is not hopeless. You will need to get in touch with an experienced Milwaukee bankruptcy attorney to discuss your options.