In some financial situations, filing for bankruptcy seems like it’s going to be the best option. While it can help to relieve you of a lot of the debt that has accumulated, there’s a lot more to consider when contemplating filing for bankruptcy that may have you wondering if another alternative might be worth checking into before you settle on filing for bankruptcy.
To help you in making this all-important decision, here are three things to consider before filing for bankruptcy.
Your Bankruptcy Will be Public Knowledge
For many people, their inability to pay their bills or stay out of debt brings up a lot of feelings of shame for them. If this is something that you’re feeling, you should know that your bankruptcy proceedings will be in the public record, which means anyone can have access to them.
According to Carrie Smith, a contributor to The Simple Dollar, everyone who is dealing with bankruptcy court will have their names published online and in newspapers. This means that a lot of your privacy will be gone once you file for bankruptcy. And the information that will become available to anyone might not be things you’d like them to know. So before you give up your privacy in this manner, make sure it’s really the option you want to go with.
Hiring A Bankruptcy Lawyer
Filing for bankruptcy isn’t necessarily an easy thing. Just like all legal processes, filing for bankruptcy involves a lot of paperwork and complicated legalities that you may not be able to manage all on your own.
As a result of this, David Haynes, a contributor to The Balance, shares that you may want to hire a bankruptcy lawyer to help ensure that you’re getting all the right paperwork done and tackling your financial issues legally and correctly. While this will be an additional cost to you, it could help you avoid a lot of wasted time, energy, money, and even property that you may have lost if you tried to do things on your own.
Expect Your Credit To Take A Hit
Although filing for bankruptcy will allow you to have an almost clean slate when it comes to your debt, this won’t happen without costing you your credit score.
According to Bill Fay, a contributor to Debt.org, if you had a higher credit score before filing for bankruptcy, you’ll likely see your credit score drop farther than if your credit score had been lower. But since you likely have been missing payments and getting behind on your bills, you may not have had that great of a credit score to begin with. Additionally, your bankruptcy will remain on your credit report for years after you’ve filed, so make sure you’re aware of that before filing.
If you’re thinking about filing for bankruptcy, consider using the tips mentioned above to help you in making this final choice.
