The decision to file for bankruptcy relief requires careful consideration. Like with many options in life, there are pros and cons associated with making choices. On the one hand, filing for bankruptcy can have an adverse effect on your credit and may be reported for up to 10 years by the credit bureaus. Some people avoid bankruptcy and in turn continue to struggle to pay the mounting debt obligations they have accumulated over the years.
For others, bankruptcy provides the very financial relief that they desperately need by eliminating up to 100 percent of unsecured debt. By eliminating this crippling debt, individuals are able start over, pay their on going bills, and begin the process of saving for retirement, a child’s education and other obligations that are likely to arise over time.
Bankruptcy is a Constitutional Right
No one should feel ashamed about filing for bankruptcy. It is important to point out that Bankruptcy is a Constitutional right. The Bankruptcy Code was incorporated into the Constitution from the very founding of this country. In other words, our nation’s founding fathers saw fit that the American people have this option. The Bankruptcy Code exists so that individuals do not have to spend their life in servitude paying on debts that they may never satisfy.
Individual Evaluation
It is important to personally evaluate your financial situation. Consider whether, at the current rate, if will you will be able to pay off your unsecured debts in a period of 3 to 5 years. Do you have the ability to set money aside to pay down the principle, not just the interest, on your credit cards, medical bills and other unsecured debts? Before you wipe out your 401k or children’s education fund, talk to a bankruptcy lawyer about your options. You have more to lose than you may realize by not doing so.
Nothing in this article should be construed as legal advice and should be used for informational purposes only.
