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Is bankruptcy really that bad?

There may be many cases where you or other Salem residents may find it impossible to avoid accruing inordinate debt. Such debts may push you to point of having no choice but to consider filing for personal bankruptcy. For many, bankruptcy is a “nuclear option,” or the absolute last step one should consider. This line of thinking is likely due to the many negative consequences that many associate with bankruptcy. Yet does seeking such protection really leave you in such bad shape?

Many point to the toll bankruptcy takes on your credit rating as a reason not to file. However, while having a bankruptcy on your record can drastically lower your credit score, so too can having outstanding debt accounts. Even if you settle such accounts, they also remain on your credit report.

Another potential consequence of bankruptcy is having your financial struggles made public. Bankruptcy cases do become a matter of public record. The stigma that may have once accompanied bankruptcy, however, may no longer exist. According to the United States Courts website, over 911,000 people and companies filed for bankruptcy in the 2015 fiscal year. Those numbers may indicate a softening of opinion towards this method of debt relief. Another may be that the notion that filing for bankruptcy may cost you your job or disqualify you from receiving public utilities is largely false.

In the end, there are positive aspects to filing for bankruptcy as well, most notably the fact that it halts any action being taken against you and completely discharges eligible debts. Bankruptcy exemptions may even allow you to keep your home and many of your other possessions. While the points presented above should not be viewed as legal advice, they may serve to help you when considering your debt relief options

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Law Office of Paul Petrillo
One Tara Boulevard
Suite 200
Nashua, NH 03062

Phone: 603-635-4149
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