Debt Management

Why Going Bankrupt Just Doesn’t Make Sense

There is a common misconception within society that the personal bankruptcy process is an easy way to start over, though the reality is that claiming bankruptcy can be a difficult, gut-wrenching process that can have lifelong consequences. While it may sound like I’m being a bit dramatic, read on to find out why going bankrupt to cure your debt woes just doesn’t make sense.

The simple mention of the word “bankruptcy” is often enough to stir up panic for those looking to address their financial challenges, and for good reason. It’s not that filing bankruptcy doesn’t serve a valuable purpose; in fact, it’s often times the only way for certain people to address their debt concerns. The biggest problem with going bankrupt is that it will severely damage your credit rating and your good name. Want to rent an apartment, attain financing or apply for employment? If so, having a bankruptcy claim on your credit report can severely impact your chances of attaining a successful outcome in life.

Apart from wreaking havoc on your credit score, the bankruptcy process can be a fairly expensive undertaking. Because most people choose to retain legal representation when filing a claim, the average person spends between $1,500 and $2,000 to have their debt addressed through bankruptcy. Do you really want to fork over your hard earned cash only to have your life ruined through the bankruptcy process?

The good news is that bankruptcy can be avoided by taking the time to meet with a reputable and knowledgeable financial professional. The right person can help you get back on solid ground by properly evaluating your situation and taking sensible action. While you might be allured by the false assumption that bankruptcy provides a painless quick-fix, you should remember that bankruptcy has been cited as one of the most stressful life events that one can go through.