Many of us were affected by the recent global economic downturn and have struggled to work our way back to a place of stability and security. If your family is one that is struggling, our team at Morgan & Partners Inc. understands how your situation can force you to face difficult situations. If you and your family are feeling the effects of the economy and are considering bankruptcy as a means to improve your situation, we suggest several important factors to consider.
- Bankruptcy May Not Erase All Your Debt – One misconception is when you file for bankruptcy, your outstanding debts will be forgiven, and you will no longer have to make payments for the things you can’t afford. While bankruptcy does eliminate some types of unsecured debt, it does not clear obligations related to child support and alimony, student loans, and fines or penalties issued by the Court.
- Your Credit May Suffer – Due to your bankruptcy status, it may be difficult to be considered for additional loans even if you have made payments to remaining debt per any agreements. There will be a notation on your credit bureau profile that your creditors will see; creditors may be more hesitant continue to lend if they believe you may not be able to handle your other financial obligations.
- You May Have Other Options – Before deciding that bankruptcy is your only option, determine if there are alternatives to paying your outstanding debts. One option is financial planning and consumer proposal services. These options can help you address your current debt load, and in some cases, offer settlements to creditors to ease your financial burden.
At Morgan & Partners Inc., we have your best interests in mind and are happy to discuss your options. Bankruptcy is a difficult decision for anyone, and you must weigh the advantages and disadvantages before coming to a firm decision. When you need counsel to determine your next steps, please call us to discuss your options. We are here to assist you!