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Helpful Information When Facing Bankruptcy in Philadelphia

The very word “bankruptcy” conjures up horrible thoughts. In life, there are many experiences that people work hard to avoid, one being bankruptcy but if you find yourself facing a major financial crisis, this might actually be a viable option. The only way to determine the best course of action is by speaking to a qualified financial advisor or bankruptcy attorney in Philadelphia.

Risks of Filing Bankruptcy

While it is true that a bankruptcy in Philadelphia would get you out of debt and create an opportunity to move forward in a healthier financial state, there are consequences. Unfortunately, those are the downside to filing but by gaining a better understanding of what the penalties are you will find it much easier to get through the process.

Remember, the bankruptcy attorney in Philadelphia that you select will sit down with you and go over everything you need to know so you do not walk into a consultation completely blinded, consider some of the consequences that you may face.

  • Credit Report – Depending on the type of bankruptcy filed, the record will remain on your credit report for years. A Chapter 13 bankruptcy stays on credit reports for 7 years while a Chapter 7 for 10 years.
  • Future Filings – Obviously, the last thing you want to think about is filing a second bankruptcy in Philadelphia but this is actually far more common than you might think. However, during the 7 and 10-year period, you would be prohibited from filing another bankruptcy. This means if you were faced with additional financial hardship, even if to no fault of your own, there would be no way to stop garnishments, foreclosure, repossession, and so on.
  • Interest Rates – Even after a bankruptcy in Philadelphia, you will probably find the process of rebuilding credit to be relatively easy. After all, without any debt, many companies will be willing to take a risk on you. However, in exchange for credit cards, a car loan, and perhaps even the purchase of a home, you will be charged a prime interest rate, which means paying significantly more compared to someone without a history of bankruptcy.
  • Possessions and Assets – One of the most frightening of all consequences when filing for bankruptcy in Philadelphia is losing everything you own including a home, car, boat, and other financial assets. There are times when this happens but having an experienced bankruptcy attorney in Philadelphia on your side you have a real fighting chance.

Hearing about the different consequences that go hand-in-hand with a bankruptcy in Philadelphia is difficult but going into the process blind is worse. There is an old saying that “knowledge is power” and when it comes to this situation, you need both knowledge and power. Understanding the process but also options is essential for overcoming a very rough time.

To gain additional insight as well as recommendations for a top bankruptcy attorney in Philadelphia, you are welcome to visit Bankruptcy-America or a local service that provides similar services.[i]