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I'm thinking about filing for Chapter 7
bankruptcy. What should I consider
before making that step?
Bankruptcy should be the very last resort, but especially now during the COVID-19
crisis. It is a serious financial decision that requires careful consideration.
Here are some things to think about before moving ahead:
h Filing for bankruptcy can be expensive.
Court costs and attorney's fees add up and are non-dischargeable. ese costs
can easily reach $4,000.
h You may lose property.
If your assets are worth more than state and federal exemption guidelines,
they can be liquidated and the proceeds divided up among your creditors.
is can include your home, car, heirlooms, and jewelry.
h It doesn't solve spending problems.
Bankruptcy fixes the issue, not the cause. It won't be much use if you spend
more than you earn.
h It will damage your credit.
A bankruptcy filing will remain on your credit report for 10 years. In addition,
it will likely cost you more to get credit for a long while after that.
Call Redstone at 256-722-3796 to schedule an appointment with an accredited
financial counselor or send your financial questions to aspire@redfcu.org.
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Money Repair
