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Bankruptcy: when it’s the best option to take

On Behalf of | Nov 6, 2020 | Bankruptcy

Contrary to popular belief, filing for bankruptcy in Florida isn’t the end of your life. In fact, it may even lead to the start of a less stressful life. Although some financial organizations say that bankruptcy is the worst thing you can do, they do not give you the whole story. The following includes a few reasons why filing for bankruptcy may be your best option.

Your credit score is tanking

Although filing for bankruptcy certainly hurts your credit score, the fact is that most people already reported having a bad score before they filed due to missed payments and high debt ratios. According to the Equifax credit bureau, many scores actually began to rise slightly after a person filed for bankruptcy.

You continue to increase your debt

Most people don’t want to file for bankruptcy. Having to file can be seen as a way of quitting on themselves financially. However, the longer you wait, the worse the conditions are going to be when you finally try to negotiate with your creditors. In addition, attempting to pay off credit cards or loans will often lead to people using their life savings or retirement accounts. It is often the characteristics of a person going through a rough time to throw in everything they can to reduce the burden. However, by the time they think about filing for bankruptcy, their accounts may be drained of any funds that would have been there to protect them during their later years.

Filing for bankruptcy is a tough decision, so it may be incredibly helpful to have an experienced attorney by your side. An experienced attorney may explain your options and help guide you toward the best possible path.