Pros And Cons Of Filing Bankruptcy

May 27, 2011 · Filed Under Declaring Bankruptcy

While I do not advocate filing bankruptcy and even though it may sound like I do think it is a great thing. You have to understand that sometimes we just do not have a different option.

However before you put your name out there and file bankrupt; you should do everything in your power to avoid it. I wanted to list some of the pros and cons of filing bankruptcy.

You are an adult and you have to decide for yourself if this is the only road that you have to get out of debt. There are other options to this situation and I will discuss this later as well.

pros of filing bankrupt:

Fresh Start: depending on which type of bankruptcy you choose to file; chances are you will get a fresh start to begin all over.
Debt Free: You will no longer have any debt to worry about; except the one that you choose to hold onto.

Cons of filing bankrupt:

Bad Credit: You most likely have worked very hard to rebuild your credit and get it to where it currently is; however once you decide to go through with it; then all your hard work will go down the drain.
Self Respect: Believe it or not this does hurt your self respect; regardless of what anyone has to say you do tend to feel bad about yourself. Yes I know that it does help you out by wiping your debts away; however it has made me feel like a failure at times.
Trust: Creditors and everyone else who take a look at your credit score are going to find it difficult to trust you. Therefore when it comes time to ask for a loan then it is going to be difficult to find someone who will lend you the money to take care of your personal issues.
Higher Interest Rates: When you do get a creditor to lend you some money; then you are going to be facing very high interest rates.

As you can see there are pros and cons of filing bankruptcy and it is going to be up to you to decide whether or not you should file bankruptcy or try to find a different option. I would however try to do everything in my power to avoid it. Click Here