Bankruptcy is one of those topics of conversation that usually don’t come up organically. This is partly due to the stigma that surrounds those who utilize bankruptcy to get out of a bad situation. While we don’t blame people for wanting to keep their financial life private, the topic should not be frowned upon or considered as a negative one. If more people knew about bankruptcy and how it works, it could help those who may be able to benefit from it. While going through bankruptcy should not be glamorized, it most definitely should not be shunned in conversations. Here at The Law Offices of John E. Mufson, we choose to think about bankruptcy as a reset button. It is a chance for someone to start over and rebuild. If you are in a situation that feels like debt has overcome your life, then let our team help you. We can sit down with you and find out if filing for bankruptcy can help your unique situation. In the meantime, keep reading to get an idea of how filing for bankruptcy can change your life.
What Happens After Filing for Bankruptcy?
When you file for bankruptcy you are going to face some negative consequences, but once the process is over you will find that the fresh start is exactly what you needed to move forward. It’s important to know that there are also different kinds of bankruptcies you can file. While many will have similar consequences. Some may be better or worse for you depending on your unique situation.
After you choose which kind you want to file you are going to more than likely going to face some loss. While the reset button will be happily given to you, you are not going to get it without going through the wringer temporarily. This is why we always suggest speaking with an attorney about this decision before you make it. You want to make sure that the benefits outweigh the consequences before you file. But don’t worry too much, that’s what our team at The Law Offices of John E. Mufson are here for. A potential loss consequence of filing for bankruptcy is the loss of property or material items. You are not going to have debt erased without paying back creditors to an extent. This means that you may have to give up your home or homes, depending on your situation. If not your home, at the very least you will face losing expensive jewelry, vehicles, antique items, and other material possessions.
You may also face a damaged credit. This may have already been a reality of your life with outstanding debt; however, if your credit was not already damaged, it will be now. Not to say that it will always be like this. You will be able to rebuild it, it will just take some time. Lenders may choose to lend to you with higher interest rates in the future or decide to lend you less than they otherwise would have. However, your fate is not sealed by bad credit. By working with your attorney you can find a “give and take” situation that works best for you. For instance, some people find a way to not give up their home. Thus, they do not have to worry about the bad credit as much as they are not planning on taking out a new mortgage anytime soon. This is why it is so important to work with the best bankruptcy attorneys. Such as our team at The Law Offices of John E. Mufson.
Contact Us Today
If you have been struggling with debt and have no way of escaping it, then filing for bankruptcy may be a solution for you. While there are many downsides to filing for bankruptcy, the freedom you will have from your debt will allow you to receive more positives. Such as being debt-free and getting a second chance at rebuilding your credit. Living with debt isn’t easy, and neither is filing for bankruptcy, but we know you can turn things around once you bite the bullet and do it. To learn more about how to file for bankruptcy and if it is right for you, give us a call today at (561) 272-1003.