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If you are facing insurmountable debt, filing for bankruptcy may be your best option to regain control of your finances and your life. It is still important to fully understand the consequences of making a bankruptcy petition, in addition to its benefits. A skilled lawyer could help you understand the effects of filing for bankruptcy in Chattanooga and ensure that you make a knowledgeable decision for your future.
A bankruptcy filing will go on a debtor’s credit report and remain there for 10 years. This can result in a number of consequences as a person attempts to become financially stable after their bankruptcy.
For example, if a debtor files for bankruptcy and then attempts to get a job, the company could see the bankruptcy when completing a routine credit report. It is illegal to discriminate against a person because of a bankruptcy on their record, but it may still happen.
Bankruptcy may impact a person’s future loans, as credit will usually be offered at a much higher interest rate. After filing for bankruptcy, it could be difficult for a person to make major financial commitments like getting a mortgage. A nearby lawyer could advise a debtor debating a bankruptcy filing on these potential impacts.
Filing for bankruptcy can allow a debtor relief from creditors through a discharge of debt. Unfortunately, a person’s issues with debt collectors may not end there, and they may need to consult a skilled attorney in the area about how to best handle their relationships with creditors.
A bankruptcy on a person’s record can lead to unscrupulous creditors using aggressive tactics while offering loans. They may be less patient with late payments and not act as mercifully as they would with an individual who had not filed for bankruptcy.
Another disadvantage of filing for bankruptcy is that it allows creditors to come after any cosigners on the debt. For example, if a debtor has a credit card bill in their name and the name of their spouse and they file for bankruptcy, then the person filing will be discharged from obligation on that credit card debt, but their spouse will still be liable. The creditors may then come after the spouse to collect that debt.
For many debtors, filing for bankruptcy is the best option to get their lives back on track, but a person’s financial problems may still persist after their petition is approved. Filing for bankruptcy in Chattanooga can have a lasting impact on your record and credit score, and it may be crucial to be aware of all the negative effects before filing.
A dedicated bankruptcy lawyer could explain all of these consequences in further detail and give you peace of mind that you made the most informed decision possible. To discuss your legal options and begin getting your finances under control, call today to schedule a confidential consultation with an attorney.