Three Lesser Known Impacts Of Bankruptcy (And How To Prepare For Them)
Bankruptcy is a great option for many individuals, and there are many benefits that come with filing for bankruptcy, including freedom from overwhelming debt. If you're considering filing you've probably heard of the more common impacts of bankruptcy, such as repossession of luxury items and absolution of most debts. Below are three of the lesser known impacts of bankruptcy and how you can prepare for them.
The Emotional Rollercoaster
If, after careful consideration and exploration of alternative options, you've decided that bankruptcy is right for you, you may feel a weight being lifted from your shoulders. While this feeling may last for quite a while, and may even reappear from time to time, it's important to know that there are negative emotions that go along with bankruptcy, too.
Feelings of doubt, uncertainty, and a lowered sense of self-worth may kick in. While these feelings can be overwhelming, they can also be crucial to the future health of your finances. Bankruptcy is a time to reevaluate your life – how did you get to this point, and what can you do to ensure you don't end up here again? It's important to understand that your self-worth isn't tied to your financial standing, and you can rise above this hardship and come out stronger in the end.
A Change in Life Plans
The impact that bankruptcy has on you financially, and even emotionally, may mean tweaking a few of your life goals on a temporary basis until everything is back in order.
Bankruptcy can impact your ability to do a number of things, such as starting a new business or buying a new home. It can also mean a stricter budget for a number of years, such as when filing chapter 13 bankruptcy, which can mean putting a hold on starting a family or making a career move. While these changes in your plans can be frustrating, it's important to understand that they aren't permanent and with time, you'll be able to do all of those things and more.
Bankruptcy isn't exactly a clean slate, but it's as close as you can come when it comes to your credit report. This can be simultaneously freeing and frightening – what does this mean for your financial future, and how can you begin to look ahead towards stability?
When considering bankruptcy, it's time to sit down with a financial counselor and work out a future plan. Bankruptcy remains on your credit report for 7 years if filing chapter 13 and 10 years if filing chapter 7, and this can be terrifying for those who are unsure of how this will impact them. Your financial counselor will help you set up a solid, after-bankruptcy plan to get your financial life and credit back on track so you can pursue your life plans and work towards a bright financial future. This may include significant sacrifice on your part, but the easing of uncertainty will be worth it.
The above three lesser known impacts of bankruptcy are very real and can sometimes be overwhelming. Before filing for bankruptcy, it's always a good idea to sit down with a bankruptcy attorney, such as Steven J Glaser, Atty, to better learn how filing will impact your life, and how you can prepare for such impacts. To learn more about bankruptcy, consult with a bankruptcy attorney.