Charlotte Bankruptcy attorney Bryan W. Stone answers the question: “What are the pros and cons of bankruptcy?”
Anyone who has ever considered filing bankruptcy is likely familiar with the questioning and doubt that can come along with the process. Are you really ready to pull the trigger or is it a bit premature? Are there other options left to explore or is it time to bite the bullet? These can be difficult questions to answer and anyone grappling with the subject for the first time likely needs some guidance about how to properly evaluate the issue.
Filing for bankruptcy provides people a way of tackling debts that may have ballooned to unsustainable levels. Either restructuring debts to make them more manageable (as in a Chapter 13) or eliminating them entirely (as in a Chapter 7) can go a long way to making your financial life more manageable. However, there are also consequences that come with filing bankruptcy which also need to be considered.
The biggest repercussion of filing for bankruptcy is that your credit score will take a real shellacking. The biggest dip occurs right after the bankruptcy is filed, but the damage will remain for up to 10 years, when the bankruptcy is finally removed from your credit report. During this time you will likely have difficulty getting loans to buy a house or car or even to start a business, and you need to be prepared for this reality.
What are the emotional consequences of filing?
Some people feel like there’s a stigma surrounding bankruptcy and the worry of what others might think could hold them back from moving forward and filing. Try not to worry about what someone else thinks; instead examine your own feelings on the subject more closely. How will you feel about yourself if you declare bankruptcy? Will you feel guilt or an enormous sense of relief? Bankruptcy is no quick fix and it should not be entered into without first thinking through some of feelings that might arise after you decide to file.
How to decide?
No one but you can decide whether filing for bankruptcy is the right thing to do. It can be a fraught decision for some people and the only way to tackle it is to spend some time weighing the pros and cons. Bankruptcy can serve as a new lease on life for some who are truly trapped by huge levels of indebtedness. However, bankruptcy by itself will not change bad spending habits and unless these underlying issues are resolved you may find yourself back in a similar situation years down the road.
If you find yourself needing the services of a Charlotte, North Carolina bankruptcy attorney, please call the skilled lawyers at Arnold & Smith, PLLC today at (704) 370-2828 or find more resources here. As professionals who are experienced in the bankruptcy arena, our attorneys will provide you with the best advice for your particular situation.
About The Author:
Bryan Stone is a Partner with Arnold & Smith, PLLC where he focuses his practice on all aspects of bankruptcy, including: Chapter 7, Chapter 11, Chapter 13, home loan modifications and landlord tenant issues. Originally from Macon Georgia, Mr. Stone attended the University of Georgia for a BBA in Banking and Finance and went on to Wake Forest to earn his law degree. After law school Mr. Stone relocated to Charlotte where he has become quite involved in many local organizations. He is currently the Chair of “Bravo!” the young professionals organization of Opera Carolina, he also founded the UGA Alumni Association of Charlotte. In his spare time he enjoys perfecting his BBQ skills for the annual “Q-City BBQ Championships” and playing softball with the Mecklenburg County Bar Softball League.
“How to know when to declare bankruptcy,” published at BusinessDayOnline.com.
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