What are the long-term effects of bankruptcy?
What are the long-term effects of bankruptcy?
Bankruptcy is a topic that most people would rather not talk about, but is an unfortunate reality for many. Whether it's the result of the current recession, or simply the product of a poor financial decision in the past, bankruptcy can be a hard, emotionally taxing experience for those who go through it. Bankruptcy can happen to individuals or businesses who are unable to pay off their debts and bills after making a bad investment or suffering from an unforeseen expense. Bankruptcy proceedings vary in duration and outcome depending on the case and the debtor's income, but some kind of debt relief is almost always necessary for those who find themselves in this situation.
If you've ever considered bankruptcy, you might be wondering: how will it affect your life in the long term? There are many factors to consider when determining the long term effects of bankruptcy.
- Bankruptcy can have long term positive effects, such as making your credit score rise.
- Bankruptcy can have long term negative effects, such as damaging your reputation.
- Bankruptcy has no long term effect on your spending habits.
Bankruptcy is a serious decision, and there are many misconceptions about what happens and how it affects your life afterwards. Here are the facts;
- When you declare bankruptcy, all of your debts are wiped off the slate. You don't have to pay any of them back.
- Some debts can't be erased with bankruptcy—most notably student loans, child support, and alimony—but the majority of debt that accumulates over a lifetime can be wiped out after bankruptcy.
- After bankruptcy, you're no longer obligated to pay back your creditors. This means you can breathe easier knowing that you're no longer carrying the burden of crippling debt on your shoulders and in your mind.
Bankruptcy does not affect all portions of your finances in the same way. For example, bankruptcy will not affect things like:
- The ability for you to rent an apartment or lease a car.
- Your credit score (your credit score will be affected much more if you do not file for bankruptcy).
Bankruptcy is often an emotional decision, but it can have far-reaching consequences that last for years after the initial filing, so it's important to think through all of the angles before making a decision.
If you have any questions or in need a Bankruptcy Attorney, we have the Best Attorneys in Utah. Please call this law firm for free consultation.
Ascent Law LLC
8833 S Redwood Road Suite C
West Jordan UT 84088
(801) 676-5506
Disclaimer: This is not legal advice and is simply an answer to a question and that if legal advice is sought to contact a licensed attorney in the appropriate jurisdiction.
