filing for bankruptcyDeep in debts, the only thing you could think of would be filing for bankruptcy. While it may seem like an easy getaway, you need to know what you are walking into. While you have enough trouble of dodging calls from debtors, bankruptcy plea will not give you an easy time either. You need to know where you are right now as well as where you will end up afterward. Just you know; it is cheap to take the plea. And worse of it, the plea will destroy your credit score for years or a lifetime. That why you need these critical things to know about bankruptcy:

You will be exposing your financial information to the public eye

For some people, it is the wildest idea to share their financial information with their spouse. If that is hard enough, bankruptcy plea is a million times worse. You will be opening your related monetary information for public scrutiny. Your debts, salary, shares, property, and anything else in your dirty financial linen will become public knowledge. You will even have to answer very uncomfortable questions. However, if this is the only way to get protection, then you should be ready.

Bankruptcy is a personal discharge

The plea only serves to protect your creditors from collecting their dues from you. However, it does not absolve you from the debt itself. The creditors can still file to collect their debt. A good example would be in a case where you co-own a property. If the other party has not filed for bankruptcy, the property can still be used to pay off your debts.

It could cripple your credit score for many years

Officially, it could take you two years to recover from the effects of bankruptcy. However, that does not mean you will be in the clear so soon. It is not that creditors will not be willing to lend you; they will but charge you very high premiums. To repair your credit score, you will be forced to take small credits until such a time you are fully recovered. It could take years so brace yourself for hard times ahead.bankruptcy

It is not a get in getting out strategy

Out of ignorance, some people think bankruptcy is something you can get into today and be out when you want to. You should know this is something that will spin out of your control once you conclude the process. Once you have your feet in bankruptcy, you have no option other than swimming to the other side; there is no turning back. If you are very lucky, you could recover after two years. If you are unlucky, it could take you years
to be back.

It is not cheap

It does not matter that your finances are in bad shape; you have to shelter the expenses of going into bankruptcy. If you are hiring an attorney, you will have to raise the legal fee. Retaining the attorney will also cost you money. The bankruptcy fee is not an option. If you thought it would be a cost-free process, you had better get ready.