Deciding tofile for bankruptcy can be overwhelming. The word itself – “bankruptcy” – even sounds ominous and scary by itself! While striving to pay your bills and working with your financial institutions is always a good first step, the ultimate decision to file for bankruptcy may be the right one.
There are many reasons why you may fall behind on bills. The loss of your job and prolonged unemployment, a serious medical crisis, or even a divorce can send your finances spiraling out of control and leave you unable to catch up. A permanent disability may also leave you unable to pay bills or medical expenses. Additionally, the repossession of your vehicle, threatened eviction by your landlord, or imminent foreclosure of your home are signs you should file for bankruptcy.
Pros and Cons of Filing for Bankruptcy
There are pros and cons to filing for bankruptcy. The biggest pro is that many of your debts will be forgiven. The court will also issue an automatic stay that will bar creditors and collection agencies from contacting you. Depending on your situation, you may be able to keep certain exempt possessions.
There are also cons, however. For example, back taxes, student loans, alimony, child support and government fines will remain after you file bankruptcy. You may also lose any of your non-exempt properties. Additionally, your credit history will be seriously impacted for the next 10 years.
We point all of this out because it is important to recognize the seriousness of your bankruptcy claim. To help you evaluate your case, however, you may want to schedule a consultation with an experienced bankruptcy lawyer.
If you need an attorney in Kennewick, WA, Rodriguez Interiano Hanson & Rodgers PLLC can help. Contact us today if you are considering bankruptcy!