Why You Should Try To Avoid Bankruptcy
Some people get buried so far in debt that they feel that the only way out is to file for bankruptcy. Hold on just a minute, you need to think about all of your options before deciding to file for bankruptcy. There are reasons that you should hold off on filing for bankruptcy.
The first reason is fairly obvious. Your credit will be negatively affected for years to come. It is hard to get rid of a bankruptcy on your credit report and if you have one on there, even if it was from years ago you may not be eligible for a loan.
When you file chapter seven bankruptcy there are some of your assets that are protected, but some such as property that are not. You will run the risk of losing your property or other assets when you file chapter seven bankruptcy.
Most people think that when you file for bankruptcy that all of your debts are eliminated. This is not the truth, in fact there are some that will not be eliminated that you will still be responsible for paying. Instead if you contact the company that you owe money and work with them on payments you will have an easier time paying those bills off than if you filed for bankruptcy.
If you file for bankruptcy your financial future is in jeopardy. You can always apply for loans and new credit but you will most likely not get it even if the bankruptcy happened years before. If you do manage to get a loan or new credit your interest rate is going to be incredibly high.
Not all retirement plans are protected when you file for bankruptcy. This could put a big wrinkle in your retirement plans. You may not be able to retire when you thought you would and when you do retire you may not be as comfortable in your retirement as you would be had you not filed for bankruptcy.
Many people feel that filing for chapter seven bankruptcy will take care of all their problems. This is not the truth. Bankruptcy should be a last resort, not the first choice. There are other ways to work on dealing with your debt without the risk of losing assets or affecting your retirement.