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What are the consequences of filing for bankruptcy?

There are many different forms of debt relief out there that can help the many Tennessee residents who find themselves struggling financially right now. They all have their advantages and disadvantages. Before jumping on board with any of them, it is important to understand what those disadvantages are. That is why, this week, this column will specifically address the negative consequences associated with bankruptcy so that people understand what it is they are signing up for if they opt to pursue it.

The biggest disadvantage to filing for bankruptcy is that it will sit on a person’s credit report for years — anywhere from seven to 10. With it listed on a credit report, it may affect various aspects of one’s life. It may hurt one’s ability to:

  • rent or buy a home
  • obtain credit
  • acquire a personal loan
  • get a job

The good news is that the negative impacts of bankruptcy are temporary. It is possible to rebuild credit, even with a bankruptcy listed on one’s credit report. It just takes time, smart financial decisions and a lot of hard work.

Bankruptcy is not the end of the world; it is a bump in the road that will ultimately lead to financial freedom. Is it for everyone? No, but for some, the benefits outweigh the disadvantages and make it worth their while. Tennessee residents who want to learn more about bankruptcy and find out if it is a good fit for them can turn to an experienced bankruptcy law attorney who will be able to review their financial situations and help them pursue the relief option that makes the most sense for their circumstances.

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