What are some reasons why someone might file for personal bankruptcy? What are some things to consider before doing so?

 

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Jan Meriss Alfonso
Assistant at Ascent Law LLC

Personal Bankruptcy - Why You Might File For Bankruptcy

There are a variety of reasons for filing for personal bankruptcy. Overspending, for example, can result in a person wasting more money than they should. This can happen if someone is constantly on a shopping spree or goes over the family food budget. Although overspending is something you can control, other factors are uncontrollable - like illness or loss of a job. In some cases, it is necessary to file for bankruptcy because you need assistance to pay your bills.

Disadvantages of filing for personal bankruptcy

Filing for bankruptcy means that you will lose your assets. The court will take your property and sell it to pay your creditors. You will also lose some tax refunds. Some potential landlords and employers will ask you about your bankruptcy history. Also, some non-dischargeable debts can't be discharged, such as student loans and alimony. In addition, some security clearances can't be obtained if you file for bankruptcy.

Some people may think that filing for bankruptcy is a bad idea, but there are many benefits. The process can help you get back on your feet financially, preventing creditors from suing you and ruining your credit. It can also restore utility service. In addition to these benefits, bankruptcy can stop wage garnishments and bank account levies. It can also stop evictions.

Another disadvantage of filing for bankruptcy is that your credit rating will be negatively affected for seven to ten years. In addition, you may have to pay filing fees and attorneys' fees, which will hurt your financial situation in the long run. In some states, a standard Chapter 7 bankruptcy can cost upwards of $2,000 in attorneys' fees.

Disadvantages of filing for personal bankruptcy after a divorce

Filing for personal bankruptcy after divorce is a legal way to settle outstanding debts. The divorce judge will determine the division of debts and assets between both parties. If one party has joint debts, the court may order them to repay them. If they fail to do so, the other party is liable for the full amount of the debt. If one party files for bankruptcy, the debt will be discharged, but the other party will be obligated to pay the balance.

However, filing for bankruptcy after a divorce can be difficult if the divorce was acrimonious. In such a case, it is hard to persuade the other party to participate in the process. Additionally, in many cases, bankruptcy will take longer to process.

If you have any questions, you can get a free consultation with the Best Attorneys in Utah.

Ascent Law LLC:

8833 South Redwood RoadSuite C

West Jordan, UT 84088

(801) 676-5506

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Do you need a bankruptcy lawyer? If you do, call Ascent Law for your Free Consultation (801) 676-5506 - We are here to help you.
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