Debt relief: what is the best option? The truth is, the answer to that question will be different for everyone. For some Kentucky residents, bankruptcy seems to be the obvious choice, but it is not something to jump into without thinking of the long-term consequences first.
According to a recent 2017 news article 700,000+ Americans went through the bankruptcy process. They all had their own reasons for doing so, and all achieved some level of relief.
For that 700,000+ individuals, their Bankruptcy filing will stay on their credit report for seven to 10 years. During that time, one could find it harder to obtain loans or lines of credit with fair interest rates. This means that, if loans are granted, those individuals with bankruptcies on their records could end up paying a lot more in interest compared to individuals with higher credit scores. This is simply a long-term consequence that people considering bankruptcy need to weigh in contrast to how their outstanding debt is affecting their credit scores.
Is bankruptcy perfect? No, but it can really help if one’s circumstances are just right. Kentucky residents who are thinking about bankruptcy can ask questions regarding the pros and cons of filing. With the assistance of legal counsel, it is possible to make an informed decision.
Source: fool.com, “Here’s How Much Borrowers Pay on Loans After a Bankruptcy“, Chris Neiger, April 21, 2018