The answer to that question completely depends on your financial situation before filing. If you have perfect credit, can pay your bills on time and in full each month and could pay off all your medical and/or credit card debt in less than a year, then there could be disadvantages to filing bankruptcy.
However, if you are searching for bankruptcy information, chances are you do not fit into this category. If you have debt that you cannot service, if your credit score is sink faster than the Titanic or if you are facing constant threat of a lawsuit, then the advantages of filing bankruptcy far outweigh the disadvantages.
The real question to research is – what are the advantages to filing bankruptcy? The number one advantage to filing bankruptcy as opposed to not filing is your ability to obtain a fresh start. The United States does not have a debtor’s prison, but the strain from debt piling up can act as a prison to financial freedom. In most cases, you can discharge your debts (such as credit cards, medical, other loans and some taxes), keep your assets and move forward with life in about three months.
Once you file bankruptcy, your credit report will have to be cleaned of all inaccuracies. You should know that you are protected by Federal Law when it involves the information contained on your credit report. Bottom line – your credit report should be accurate. For example, if after bankruptcy, one of your credit lines is still showing a balance or still in collections, then you have a right to demand that they fix the credit report. You want to dispute all inaccuracies to make sure that your FICO score is not lowered because one of your credit lines fails to report accurate information to your bureaus.
After you get your inaccuracies all fixed, you should focus your attention to your credit score. To improve your credit score, you can read many of the books available regarding credit score repair. Our office provides a service for our bankruptcy clients through www.720creditscore.com. With the help of 720 Credit Score, you can obtain a credit score of 720 in as few as 12 months.
Disadvantages to filing bankruptcy fade away rather quickly when you ask the right questions: where is your credit score now? Can you get out of debt within 1 year? Do you have lawsuits pending? If your answers to these questions are yes, then bankruptcy could be the most positive thing you do to improve your financial life. Do not let fear get in the way of financial freedom.
by Jeff Bursell