Do you have overwhelming amounts of medical and credit card debt? Two popular forms of debt relief are Chapter 7 and Chapter 13 bankruptcy. Both forms of bankruptcy can potentially free you from the burden of bankruptcy.
There are many benefits to filing for bankruptcy, however, there are some downsides to filing. Here is what you should know:
Pro: You will not have to deal with overwhelming debt
The biggest benefit of bankruptcy is debt relief. High amounts of debt can severely affect families. A successful bankruptcy can relieve the financial and emotional burden of overwhelming debt.
Con: You will see your credit score drop
The price of applying for bankruptcy is that your credit score will likely drop. Bankruptcy can stay on your credit score for as much as 10 years. With a lower credit score, it can be harder to apply for loans and credit cards.
Pro: You can raise your credit score again
With the right steps, you could build up your credit again after a successful bankruptcy filing. This can be done by taking out products with companies that specialize in post-bankruptcy credit.
Con: You may have to wait to file for bankruptcy again
It is possible to have overwhelming debt again after getting your debt relieved. If you have had a successful bankruptcy filing in the past, you may need to wait several years before filing again. The longest you may need to wait is 8 years, but this can depend on the type of bankruptcy you filed and the type you plan to file.
Pro: You can get help when filing for bankruptcy
You do not have to file for bankruptcy alone. You can reach out for legal help to learn about your debt relief options.