Filing for bankruptcy happens when people are unemployed, have a large amount of credit card debt or unable to keep up with their other forms of debts, like medical, car, and more.
There are multiple reasons to file for bankruptcy, but do people know the benefits that come with it?
In order to declare bankruptcy, people should first collect their personal financial documents and see where their finances stand.
Declaring a chapter 7 bankruptcy would essentially wipe out debts, however, it could also damage people’s credit history. If you plan to do something like buy a new car or a new home within the next 7-10 years, a strike on your credit like bankruptcy is a huge red flag for many loan agents.
Completing the filing process has known to be easy, however, and when financially necessary, it can be a great option for those looking for a fresh start and a clean slate. You don’t have to be buried in debt, but know there are always downsides.