5 Reasons to Avoid Filing for Bankruptcy

For some, bankruptcy is a necessary solution to help them re-establish themselves financially. In certain cases, it is a last resort and the most appropriate option for dealing with overwhelming debt. Nevertheless, there is a reason that bankruptcy has such a negative stigma in American culture-its effects can be extremely damaging and long-lasting. Here are five good reasons why you may wish to avoid filing for bankruptcy.

1. Legal Fees

While you can file on your own, it is recommended that you hire a lawyer to help you with the bankruptcy paperwork and proceedings. Unfortunately, lawyers are not inexpensive, charging on average $200-$300 per hour or more. This is a quick way to accumulate several thousand dollars of extra debt even before completing the bankruptcy.

Selecting Bankruptcy Lawyer, Bankruptcy Lawyer Tampa, Borders Bankruptcy,

2. Your Credit Score

Any bankruptcy is automatically reflected on your credit score for at least a 7 year period. Creditors begin to see you as a high risk borrower, meaning higher interest rates as well as a higher probability of being turned down for a loan. There are ways to recover your credit, but it takes time and patience.

3. More Than Just Creditors Are Checking Your Credit Score

Creditors are not the only ones who are referring to credit history to judge you. It is now very common for employers to research your credit before hiring you. Insurance companies are also known to research clients' credit scores and have even charged higher rates to individuals with lower credit scores.

4. The Negative Stigma That Accompanies Bankruptcy.

Filing for Bankruptcy can be a very emotional experience. It is not uncommon for an individual to become depressed or disheartened or to feel like a failure. Our society view bankruptcy as something shameful and negative. For example, almost all applications ask if you have ever filed for bankruptcy, nearly in the same way that they ask if you have ever committed a felony. Although there is nothing morally or legally wrong with filing for bankruptcy, it can often cause secondary effects that one would never expect.

5. New Bankruptcy Laws Mean Stricter Regulations for Bankruptcy Claims.

Since the Bankruptcy reform of 2005, it has become harder to file for bankruptcy, and those who do more often than not find themselves paying back a large amount of their debt. Courts are no longer dissolving debt as easily as they once did, which means that bankruptcy may not give you the debt relief you are looking for.

If you would like to learn more about avoiding bankruptcy, consider speaking to a Debt Elimination professional. He or she will be able to help you analyze your specific situation and find the best solution for you.

Bankruptcy Software For Attorneys

Is Bankruptcy Right For You? Talk to Bankruptcy Attorneys Free and Confidential. Licensed bankruptcy attorneys are available. Attorneys will call you to discuss your case for free. Find out if bankruptcy is right for your situation.

Rating of Bankruptcy Software For Attorneys

Get Online Application at online Bankruptcy Lawyer.