If you are asking yourself this question, then bankruptcy is most likely a very real option for you. However, filing for bankruptcy is a very hard thing for many people to come to terms with. People considering filing for bankruptcy often face the decision with a lot of anxiety and doubt, wondering if bankruptcy will really be the solution they have been waiting for. Any extra thought put into the decision is well-spent; bankruptcy is a challenging thing to face, and filing for bankruptcy is not a decision that should be made lightly. Weighing the pros and cons of bankruptcy can help you make an educated and confident decision. In this post, we will address some of the questions many people ask as they try to decide if bankruptcy is “worth it” for them.
Won’t bankruptcy ruin my credit?
A bankruptcy filing does show up on your credit report, but this does not mean that your credit score is ruined for life. The impact that a bankruptcy can have on your credit score will depend on your current score and financial situation. In some cases, a bankruptcy may actually help your credit score in the long run, since it will eliminate outstanding debts from your report. Bankruptcy can give you a fresh start, and if you use caution with future spending, you can gain good standing with credit companies again! Talk to your bankruptcy attorney about your specific credit situation to find out what kind of impact filing for bankruptcy may have on your credit.
Do I have to give up everything I own when I file for bankruptcy?
The short answer here is no. While it is very important that you list all of your assets when filing for bankruptcy, you are usually able to keep certain things, such as your home, car, and many personal effects. A qualified JacksonWhite bankruptcy attorney can give you a comprehensive list when you meet.
Will bankruptcy really help my situation?
Some people may not realize that bankruptcy, while only a 4-6 month process, is not a “quick fix” to all their financial issues. Only true dedication to fixing your spending and borrowing habits can make a lasting difference in your financial life. For this reason, some financial experts strongly discourage bankruptcy at all times, no matter the circumstances. However, you should know that the current bankruptcy process requires you to undergo credit counseling (commonly referred to as bankruptcy counseling) and financial management courses, which serve the purpose of helping you develop positive financial habits. Because of these requirements, bankruptcy has become less of a “Band-aid” fix and more of a deep, meaningful solution.
Isn’t hiring an attorney expensive?
Typically, the legal fees associated with hiring an attorney are nothing compared to the amount of debt that can be forgiven through filing for bankruptcy. You should also remember that filing for bankruptcy yourself, or using a cheap document filing company, will often result in errors in judgment and/or filing. Only an experienced attorney can give you helpful advice and make sure that everything is handled exactly as it should be. At JacksonWhite, we offer flat rates for filing for bankruptcy, which simplifies the process and helps you feel confident that we are not dragging things out to get more money from you.
Ultimately, the decision of whether or not to file for bankruptcy is up to you. However, it would be very wise to take advantage of JacksonWhite’s free bankruptcy consultation before you make such an important decision! At no cost to you, our experienced Arizona bankruptcy attorney, Benjamin Skinner, will listen to the specific circumstances of your case to help you determine if bankruptcy is really “worth it” for you and your family. Call him today at (480) 648-8975.