Is Filing Bankruptcy Bad Financially and Personally?
Description: Many individuals ask, “Is filing bankruptcy bad?” They hesitate because they feel that the answer is one that says they are bad for failing to pay their debts.
Is filing bankruptcy bad? This is a question that many individuals ask themselves because they feel guilty for not paying back their debts. The fact is, there are things that happen in life that causes a person to not be able to pay their credit card bills, loans, and other unsecured debts. When income doesn’t increase, there is absolutely nothing that a debtor can do to satisfy their debts. You simply cannot spend what you don’t have.
So is filing bankruptcy bad? Well, you can be the judge of that based upon these facts:
- The U.S. government designed bankruptcy to help citizens get out from under debt and start again financially. Individuals cannot positively contribute to an economy if they are constantly chasing old debts.
- Bankruptcy does remain on your credit report for 10 years. This does not necessarily make it impossible to acquire new credit. It does, however, result in higher interest rates on credit cards and loans. It is possible to get a loan approximately 2 years after the bankruptcy discharge.
- Many ask “is filing bankruptcy bad?” because of religious reasons. Many religions tell people to pay back their debts. If the income isn’t there, it can be impossible to do that. Instead, creditors spend time and use resources trying to collect a debt that may never be paid.
- The process can be a major discouragement, but a good bankruptcy lawyer will make sure the process moves as smoothly as possible. All paperwork is filed on your behalf, so all you are asked for is the financial and asset information needed to fill out those forms.
- In some areas, your name may be in the local newspaper if your newspaper provides such coverage. If they update that section once a month or sporadically, your name may not show at all.
Overall, the answer to “is filing bankruptcy bad?” depends solely on you. While you do have to comply by court orders, the process can be completed in just a matter of months. This is especially true when you have an attorney who will do all of the legwork for you and accompany you when you have to make mandatory appearances.