Keep These Reminders in Mind Before Filing for Bankruptcy

No one wants to file for bankruptcy. But, when your debt goes out of control, filing for bankruptcy can offer welcome relief and the chance to start over. Of course, the bankruptcy process is not easy but you can ease it with the help of an experienced Charleston, WV bankruptcy lawyer. To make sure you don’t regret your decision, you want to consider the following tips:

Explore Other Options for Clearing Your Debt

Before you file for bankruptcy, ask yourself if there are other options to settle your obligations. For instance, if you have a mounting credit card debt, your lender may have a debt repayment plan you can explore. If you have significant medical bills, there may be an option to extend repayments. 

It is imperative to review your income and spending to know if you can create a budget that enables debt repayments. You may want to consider getting a part-time job or sell some assets.

Ensure you Can Afford to File

Keep in mind that filing for bankruptcy costs money. Thus, you must ask yourself whether you can afford it. Expect it to cost several hundreds of dollars, plus the attorney’s fees you must pay throughout the filling.

Determine If the Filing Will Clear All Your Debts

Filing for bankruptcy does not mean all of your debts will be cleared. For instance, if you file for Chapter 7 or Chapter 8 bankruptcy, it won’t clear your student loan debt. Also, a bankruptcy filing cannot clear child support and alimony as well as different kinds of secured debt. But, bankruptcy can discharge debts such as medical bills, personal loans, and credit card debt. 

Consider the Impact of Bankruptcy on Your Future

Before you file for bankruptcy, ask yourself if you are ready for the future consequences of going bankrupt. Remember that Chapter 7 bankruptcy stays on your credit report for ten years after you file. This can seriously affect your personal finances since it might prevent you from getting financing for things such as a house, car, or a personal loan. However, this does not mean you won’t be able to receive credit. Some creditors may loan you some money but charge you a hefty premium for the extension of credit. Also, you must improve your credit score by taking on small amounts of credit when you can and repay it religiously. And because the filing will be on public record, anyone can know your bankruptcy declaration. 

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