Bankruptcy Attorney Near Me in Overland Park, KS: What Are the Long-Term Consequences of Filing for Bankruptcy?
If you or your business are finding yourselves in a lot of debt, then you might want to consider filing for bankruptcy. This is a legal process that is meant to help both businesses and individuals that are experiencing a lot of debt get rid of this debt or pay some of it off.Filing for bankruptcy is a big decision and one that you'll want to speak to a lawyer about. There are consequences that come with bankruptcy, and you'll want to consider them before filing. These are a few long-term consequences that you're going to want to think about.
A Record on Your Credit Report
A credit report is a summary of your financial history. This report outlines things like your personal information, your current and past addresses, your social security number, and in some cases your current and previous employers.When you file for bankruptcy, a note of this will show up on your credit report. This note will stay on your report for the next decade, and creditors running your report will be able to see it. This means that it might be more difficult for you to apply for credit.
Difficulty Getting a Loan
One of the biggest challenges people face in the years following bankruptcy is difficulty getting a loan. Loans can be helpful, and in many cases necessary. But if lenders see that you have filed for bankruptcy in the past, that might make them hesitant to offer you a loan.For the next few years after you've filed for bankruptcy, you're probably going to be paying cash for most things. Even once you reach the ten-year mark, you might find that you're still having a hard time applying for credit and getting loans.
Difficulty Renting an Apartment
Another thing that you are probably going to find when you file for bankruptcy is that it's much harder to rent an apartment. Landlords looking at applications for the property they're renting are going to want to make sure they're renting to reliable tenants.Unfortunately, the reality is that many landlords will see bankruptcy as a red flag. That, of course, means that they'll be less willing to rent out to you. As an additional note, you won't be able to get a mortgage loan for at least 2 years after you've filed for bankruptcy, which can make your situation even more challenging.
High Car Insurance Rates
Having a good, reliable vehicle that can get you from place to place as needed is important. But part of owning a vehicle means paying insurance rates. And, if you've filed for bankruptcy, your insurance rates are likely to be pretty high.That's because most insurers use a credit-based approach to determine how much to charge you for their rates. Even though it seems unfair to have to pay more in insurance after you've fallen on difficult times, it's unfortunately within these companies' legal rights to charge more if you have bad credit.
Difficulty Finding a Job
If you've filed for bankruptcy because your business failed, then the next step would, of course, be to find a new job. You need something to help you pay the bills and buy groceries, after all.But people who have filed for bankruptcy are likely to have a more challenging time finding a new job. While not all employers will consider your credit score when thinking about hiring you, some certainly will. The employer has to ask for permission before seeing your credit report, but a bankruptcy filing can look like a serious concern to them.
You Won't Be Able to File for Bankruptcy Again for Years
Nobody wants to file for bankruptcy once let alone several times. But there will be some situations where it may be more worth it or even necessary to file for bankruptcy a second time.However, if you have filed for bankruptcy, then you will need to wait several years before you can file a second time. The exact amount of time you'll need to wait depends on a few things, including the type of bankruptcy you've filed for and what chapter you're looking to file this time. However, expect to need to wait several years.
When Should You File for Bankruptcy?
There are several long-term consequences that you'll encounter when you file for bankruptcy. It's very important that you consider these consequences and take them into account before filing. Some of them can have drastic effects on your life.However, there are certainly many cases where bankruptcy is more viable or a better overall option than any alternatives. When making the decision to file for bankruptcy, it's important to consult with a qualified lawyer. They will help you determine if this is the right choice for you.
You Are Having Trouble Keeping Up with Payments
When you go into debt, you will likely have to make monthly debt payments. However, there are other things you'll need to pay for, like your rent, food, insurance, and bills. These all take up a lot of money too.If you're having trouble keeping up with even your minimum monthly payments, then bankruptcy might be the best option for you. Bankruptcy deals with all your unsecured debts, which include credit card debts, payday loans, and unpaid bills. This could be what's necessary to get you back on your feet financially.
You're Finding It Hard to Get More Credit
Being able to get credit is helpful in many situations. But if you are in a lot of debt, then any lenders that check your credit report are going to be hesitant about offering you any additional credit.While it's true that bankruptcy will also make it hard to get more credit, once you file for bankruptcy you can start rebuilding your credit score. This won't be fast and it won't be easy, but it might be the best decision in your situation. Working with a lawyer will help you determine if this is the right choice for you.
You Are Tired of the Stress of Dealing with Creditors
One of the most challenging parts of being in debt is dealing with creditors. You may find that the relentlessness of creditor calls while also trying to manage other money demands is starting to get to you.If this is becoming too much for you to bear, then you might want to file for bankruptcy. Bankruptcy provides you with an automatic stay, which means all creditors are notified and their calls and actions against you will stop right away, leaving you with some much-needed peace a quiet.In many cases, bankruptcy is the right choice for people in businesses. However, it's very important to consider the long-term consequences, and how they can affect you and your life. To determine bankruptcy is the right step for you, get in touch with our lawyers at Stockton & Kandt Attorneys at Law.