After bankruptcy, your financial situation will certainly not be the same. Yes, a record of bankruptcy will stay on your credit report for seven to ten years. However, this doesn’t mean you can’t do anything about it. In fact, a speedy recovery from bankruptcy is very possible as long as you do the correct steps.
In this article, let’s take a closer look at the pros and cons of bankruptcy and how it should affect your decision on whether to seek bankruptcy or not.
The Pros of Bankruptcy
Many people have the false notion that bankruptcy puts an end to all great opportunities such as obtaining mortgage. On the contrary, after filing for bankruptcy, applying for a mortgage is easier because your debt to income ratio has significantly dropped.
Some people choose to take a situation for granted until it’s too late. This statement proves true for those who have experienced bankruptcy. Many of them may have noticed the signs that they may be heading for bankruptcy but choose to completely ignore.
On October 17, 2005, the new bankruptcy law became effective and introduced some major changes in the bankruptcy process. Under the new law, anyone who wants to file for bankruptcy must first undergo credit counseling with a government accredited agency.
When facing bad credit, a lot of consumers immediately consider bankruptcy, thinking that there is no other way to resolve their debt problem. But before taking any drastic step, why not first get help from a trusted credit counseling agency?
When filing for bankruptcy is the only option left, hiring a bankruptcy lawyer is the best move. Why so? Since the amendment of the bankruptcy, the process of filing has become more complicated. Preparing the necessary documents is also not as easy as you may think.