What Are The Negative Consequences To Filing For Bankruptcy?

Before you decide if you need to file for bankruptcy, it’s best to know what to expect when you do. Everything from the process to the negative consequences, will help you decide if this step is right for you. Many times, it’s easy for people to choose to file for bankruptcy because their financial situation is so bleak, and this is the step that will help the repair the damage. In this way, bankruptcy can be seen as a stepping stone toward financial freedom, instead of as a financial failure, as it’s often seen.

For many people, filing for bankruptcy is their last option. Instead of piling on the doom and gloom, here are the realistic consequences of filing for bankruptcy.

  1. The major negative consequence is that filing for bankruptcy will negatively affect your credit score. But like most people looking to file for bankruptcy, your credit score is probably already in pretty bad shape. So while this is not great, it’s not doing that much more harm.
  2. If you have substantial assets, there is the potential that they could be taken away by the bankruptcy trustee, but a skilled attorney can help you protect those assets and make sure that nothing bad happens.
  3. It generally takes about 2 years after a bankruptcy until someone can qualify for a mortgage. The positive is that after 2 years your credit score should be way better than it was before the bankruptcy.

As you can see, the consequences aren’t that negative and filing for bankruptcy could actually improve your financial situation. It’s a fresh start, a new day to make better financial decisions. And the right bankruptcy attorney can help you do just that.

At Mapes Law Offices, we don’t just see filing for bankruptcy as another case, we see it as a way for you to improve your financial situation. We understand that good people go through rough times. And we help those people get back on their feet. We work with you to create a plan that will help you get back on track financially. We want to help you establish a stable financial future and we know that means creating a solid plan together. If you’re in the Western Michigan area and are looking for a bankruptcy attorney, give us a call at Mapes Law Offices at (616) 719-3847 or request your free consultation today. One call can be all it takes to start on the path to a better financial future.