Will Bankruptcy Ruin My Life?

Bankruptcy

People who are struggling with unmanageable bills can turn to bankruptcy as a legal option. This can be a tough decision. This is partly because people are uncertain about the effects of bankruptcy. Many people ask, “Will bankruptcy ruin my career?”

Probability is that this isn’t true. What you need to be aware of

What Does It Mean to File for Bankruptcy?

It is a legal procedure that allows businesses and individuals to get relief from overwhelming debts. The process involves liquidating assets in order to pay creditors, while allowing the debtors to keep certain assets which are exempt from being liquidated.

According to the type of bankruptcy ( Chapter 7,, or Chapter 13), a debtor could be required by the court to repay all or part of their debts over time.

The Consequences Of Filing For Bankruptcy

Both individuals and businesses can suffer long-term effects if they file for bankruptcy.

Filing for bankruptcy can make it difficult to get credit in the future. Lenders may not be willing to lend money due to the risks associated with bankruptcy. The bankruptcy can also have a negative impact on one’s credit rating, which may last for up to ten years.

Due to their bankruptcy, businesses may have difficulty obtaining funding or investment. They could also suffer reputational damage from customers who learn of their financial status.

Moving On After Bankruptcy

You don’t have to give up on your financial future just because you filed for bankruptcy. After filing for bankruptcy, you can take steps to rebuild your credit score.

Create a budget within your means, and begin paying off any debts you may still have. This will build your credit over time.

Consider setting up automatic payments to ensure that you don’t miss a payment in the future. It will help you improve your credit rating in the future.

It would be beneficial to consider consumer credit counseling. You will learn how to better manage your finances in the future so you do not fall into old bad habits. Once you’ve completed the bankruptcy process, our program can help rebuild your credit. At your consultation, we’ll help you start the program once you reach that stage in the bankruptcy process.

Understanding the implications of bankruptcy can reduce some of your fears. Although there may be long-term effects such as difficulties obtaining financing and lower credit scores after bankruptcy, taking proactive measures to rebuild one’s finances can ensure a better financial future in the future.

This post was written by Trey Wright, a Chapter 11 Bankruptcy Lawyer in Jacksonville FL! Trey is one of the founding partners of Bruner Wright, P.A. Attorneys at Law, specializing in bankruptcy law, estate planning, and business litigation.

The information provided on this website does not, and is not intended to, constitute legal advice; all information, content, and materials available on this site are for general informational purposes only. Information on this website may not constitute the most up-to-date legal or other information. This website contains links to other third-party websites. Such links are only for the convenience of the reader, user or browser; the ABA and its members do not recommend or endorse the contents of the third-party sites.