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It’s vital to examine the pros and cons of a bankruptcy filing

On Behalf of | Jul 28, 2023 | Bankruptcy, Blog |

It can be frustrating when you reside in North Carolina and have trouble repaying your debts, especially if unforeseen events place you in this position. After trying to find a financial resource to cover what you owe, you may find that bankruptcy is the only option. While this solution isn’t ideal, it can help you move on with your life.

You may need to file bankruptcy when there’s no other answer to paying your bills

If you’re like many individuals, you do all you can to pay your bills. However, if you’re struggling due to unforeseen circumstances and can’t cover your debts, it may require you to file bankruptcy. You may need to take this action if your expenses equal more than half your income or it would take you longer than five years to pay off.

Is purchasing a home difficult after filing bankruptcy?

One of the most significant challenges you may find if you file bankruptcy is obtaining a mortgage when you want to buy a home. Whether you file for Chapter 7 or Chapter 13 bankruptcy, you’ll need to follow guidelines, which have restrictions on when you can apply for an FHA mortgage after filing bankruptcy.

Some debts may not be absolved when filing bankruptcy

When you file bankruptcy, it can wipe out several kinds of debts, which include medical bills, past-due rent and credit card debt. However, it’s critical to understand that not all debts are absolved when filing for bankruptcy. Alimony or child support obligations, fines and penalties owed to the government and back taxes will need to be paid back.

Bankruptcy is public record

If you want to keep your financial affairs private, you can’t if you file for bankruptcy. Filing creates a public record, allowing others to review your bankruptcy case and the amount of debt discharged. Having a public record of your bankruptcy may make it challenging to obtain a job if you work in a professional space.

Understanding how bankruptcy can help you obtain a better financial status is essential. Weighing the consequences of filing bankruptcy is crucial to ensure it’s your right move.