To file a bankruptcy case, you will first have to have a valid reason. If the filed bankruptcy does not have a valid and legitimate reason, your case will not be accepted. There are many bankruptcy lawyers in huntsville. You can hire one that is convenient for you to fight your bankruptcy case. However, hiring a lawyer at times can be expensive, more since you are already bankrupted. You can file the case for yourself. However, there are chances that it will not be accepted, mainly because of the technicalities. Filing a bankruptcy case might be the right decision for you. However, you must know that it has impacts too. Let’s look into the consequences of this article.
Toll on Credit and Property
Bankruptcy will take a toll on your credit reports and credit score, which can last for years. For instance, in the case of Chapter 7 cases, the bankruptcy will last for ten years. While in the case of Chapter 13, the bankruptcy will last for seven years. A bankruptcy on the credit card and the credit score will make it impossible for you to get a loan at normal rates. Secondly, bankruptcy will lead to losing assets. In the case of Chapter 7, all the valuable assets will be sent for liquidation to pay back to the creditors. While Chapter 1 lets you keep your properties, paying the credit amount back at a certain time is a must.
Affects the Mental Health
Bankruptcy can cause psychological problems since it carries a stigma in society. Society is comprised of different genres of people. Some people ignore this. They are least affected by what society thinks and says. In contrast, others might feel themselves to be losers, hopeless, and failures. They may even think that their neighbors and relatives think about them that way. This affects mental health and relationships. Therefore, you should think wisely before you take a step ahead for filing a bankruptcy case. We suggest you talk to bankruptcy lawyers in huntsville before deciding to file a case.
